Published 16:12 IST, November 12th 2020
Kamala Harris announces 'no tax hikes' for households below $400,000 annual income
Kamala Harris doused unsubstantiated claims that Biden would introduce a significant tax jump from 12 percent to 25 percent on $75,000 annual wages.
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On November 11, US Vice Presidential elect Kamala Harris said that under the Biden administration, there will be no tax hikes for households with less than $400,000 annual income. In a tweet, the former California senator said that Biden's presidency’s Tax policy will make high earners, society’s wealthiest, and major corporations pay a “fair share”, anyone making under $400,000 will “not pay a single penny.” Harris’ clarification comes as unsubstantiated claims made rounds that Joe Biden would introduce a significant tax jump from 12 percent to 25 percent for those earning $75,000 annually, citing the Tax Policy Center and the Committee for a Responsible Federal Budget’s reports.
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 upping the Social Security payroll taxes, as his administration will scrap President Donald Trump’s 2017 formed income tax reductions policy, the Tax Cuts and Jobs Act of 2017 (TCJA). In a Facebook post, the Trump supporters alleged that Biden will subject incomes of $400,000 with 12.4 percent Social Security payroll tax currently applicable for incomes up to $137,700.
As president, @JoeBiden will make corporations and the wealthiest finally pay their fair share—and he won’t ask a single person making under $400,000 per year to pay a penny more in taxes.
— Kamala Harris (@KamalaHarris) November 12, 2020
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 percent for domestic and foreign income for “higher earners.” Biden administration will restore the top individual tax rate from 37 to 39.6 percent, 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 percent of earners”, the committee’s report suggests.
During the final Presidential debate with US President Donald Trump, Biden was heard saying that under his proposals, “no one with income below $400,000 would pay higher taxes than they do now. Does this make sense?”, clarifying the ‘above $400,000’ threshold. 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.
16:13 IST, November 12th 2020