Kamala Harris says 'No tax cuts for the wealthy'; aims to build employee-centric economy

US Vice President-elect Kamala Harris said on Sunday that the Joe Biden administration will eliminate tax cuts for huge corporations and wealthy individuals and contribute to building an economy for the working families of the country. 

In a tweet, the former California senator said that Biden's government will scrap President Donald Trump’s 2017 formed income tax reductions policy and then work towards building an economy that caters to the working-class majority.

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Earlier this week, Kamala Harris had announced that under the Biden administration, there will be no tax hikes for households with less than $400,000 annual income. 

She said the improved Tax policy will  make high earners, the wealthiest, and major corporations pay a “fair share”, while those earning less than $400,000 will “not pay a single penny.” 

Harris’ clarification came amid claims that Joe Biden might introduce a significant tax jump from 12% to $25 for those earning $75,000 annually. In an online statement, Harris said that Biden’s plan calls for increased income and Social Security payroll taxes for households that have earnings above $400,000 a year. 

Americans speculated that Biden’s tax reforms would also lead to developing the Social Security payroll taxes, as his administration will scrap the income tax reductions policy, the Tax Cuts and Jobs Act of 2017 (TCJA).

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Biden tax plan 'highly progressive'

According to US Committee for a Responsible Federal Budget, Former Vice President Joe Biden’s tax proposal reports, the corporate tax rate will be increased from 21 to 28% for domestic and foreign income for “higher earners.” Biden administration will restore the top individual tax rate from 37 to 39.6%, on wages above $400,000 to the Social Security payroll tax, and pass various other cuts and increases. “Biden tax plan is highly progressive, increasing taxes for the top 1% of earners”, the committee’s report suggests.

With Biden’s tax plans adjusted on gross income (AGI) of $400,000 per year and spike in the corporate tax rate, the government would raise $3.375 trillion in new tax revenue while increasing spending by $5.37 trillion over the fiscal years 2021 – 2030, according to Wharton’s budget model. 

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