According to an analysis, the Democrats' spending bill violates Biden's tax pledge

President Biden has stated repeatedly that his ideas will not raise taxes on anybody earning less than $400,000 per year.

But a new analysis from the Tax Policy Center — hardly a conservative source — finds that his signature Build Back Better plan would do just that.

“Taking into account all major tax provisions, roughly 20 percent to 30 percent of middle-income households would pay more in taxes in 2022,” according to the analysis. True, the analysis finds that the increases would be relatively small. “Among those with a tax increase, low- and middle-income households would pay an additional $100 or less on average. Those making $200,000-$500,000 would pay an average of about $230 more,” it reads.

Yet there were many occasions on which Biden reiterated his tax pledge, and he was quite clear that there would not be any increases, even small ones.

“Here’s the deal,” he said on September 3, 2020 (video below). “I pay for every single thing I’m proposing without raising your taxes one penny. If you make less than 400-grand you’re not going to get a penny tax.”

The tax proposal, however, does not just contradict Biden's campaign rhetoric, which attacked Republicans for granting tax favors to the wealthiest. The most recent iteration of his plan would increase the SALT deduction ceiling.

According to the TPC's findings, “Despite what its promoters say, raising the cap to $80,000 would provide almost no benefit for middle-income households. It would reduce their 2021 taxes by an average of only $20. Even those making between $175,000 and $250,000 would get a tax cut of just over $400 or about 0.2 percent of after-tax income. By contrast, the higher SALT cap would boost after-tax incomes by 1.2 percent for those making between about $370,000 and $870,000 (the 95th to 99th percentile).”

A further breakdown shows that 65.6 percent of millionaires — or nearly two thirds — would receive a tax cut, and that the average cut would be $16,760.

UPDATE: To prevent any misunderstanding, I've seen that some individuals on Twitter are focused on a separate aspect of the research that concludes that millionaires will face a net tax rise. So, how can I reconcile this with what I just said? According to the Tax Policy Center, around two-thirds of millionaires would get a tax relief, while the other one-third would see a significant tax hike. On a net basis, this equates to a $68,000 gain in millionaires as a group. Nonetheless, the Democrats' policies would result in two-thirds of millionaires paying fewer taxes.

 

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