White House clarifies which wealthy individual filers will get snagged by Biden tax hike
Another tax proposal involves raising the corporate tax rate to 28% from 21%.
White House press secretary Jen Psaki on Wednesday said that individuals who make up to $400,000 won’t pay an extra penny in taxes under President Biden’s new plan.
The president has been clear all along that families earning up to $400,000 would not be the target of the tax hike, but it was unclear whether there would be a lower income threshold for individual filers.
When asked by FOX Business’ Blake Burman on Wednesday what the threshold would be for those individual filers, Psaki said $400,000.
“So just to be clear, individual filers, if you make up to $400,000 you're an individual, you will not pay a penny more, just like families won't pay a penny more?” Burman asked.
“That's right,” Psaki responded.
MILLIONS OF BACKLOGGED TAX RETURNS MAY BE PROCESSED BY SUMMER, IRS COMMISSIONER SAYS
Individuals who earn a lesser amount could be affected, however, if they are part of a couple filing jointly that reports a cumulative income of $400,000 or more.
Tax rates on people earning more than the specified threshold would increase to 39.6%, from 37%. These people may also be subject to a 28% cap on itemized deductions.
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The president has also proposed taxing capital gains at ordinary income rates and eliminating step-up in basis, which is the readjustment of the value of an appreciated asset.
Another tax proposal involves raising the corporate tax rate to 28% from 21%.
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Biden is hoping to push through two more legislative efforts, including one focused on infrastructure and clean energy and another on domestic people-facing programs like childcare.
Revenue collected from the tax increases is expected to help fund both of these initiatives.
FOX Business’ Blake Burman contributed to this report.