Who would benefit from the tax increases with which Biden wants to finance his investment projects

With the tax reform passed under the Donald Trump administration, those who earned more than $ 523,600 per year individually and $ 628,300 as part of a married couple’s income paid 37% of taxes.

If Joe Biden’s reform is approved in Congress, the achievements these would be those who individually earn more than $ 452,700 per year and $ 509,300 if they form a married family unit. Regular income as well as money earned from stock market investments is taken into account for this tax increase.

President Joe Biden promised during his campaign that no one making less than $ 400,000 a year would be affected, but the White House gave questionable answers when asked if the limit was individual or for couples. Republicans have been critical of the measure for months.

Today, with the confirmation that couples who earn more than $ 509,300 per year will see their taxes increase by 2.6%, The first criticisms from Republicans have already emerged, pointing out that many will have to pay more taxes, while a couple in which each member charges 275 thousand dollars per year already falls into the new tax category.

What will the government of the collection do

From the White House, they insist that the important thing about the project is what will be done with the money they will raise through the tax increase. Most of it will be used to fund part of the $ 1.8 trillion project President Biden plans to invest in social projects and assistance to families, especially those affected economically by the crisis resulting from the COVID pandemic. 19.

Among the specific projects put forward by the president, including his campaign, are the possibility of offering free university education – which does not currently exist in the United States – state covered child care – public school begins in preschool in this country, so that during the first 4 years, the parents must individually bear the costs of childcare and paid work licenses – which are very limited.

In addition to the tax increase, The reform proposes to remove loopholes in the law that allow high incomes to deduct more taxes and promises to conduct more audits among high income demographic groups.

“Everyone has the right to become millionaires or billionaires. But they have to pay ”, Biden said Wednesday ahead of the congressional plenary session.

The White House’s calculation is that with this increase, $ 1.5 trillion will be raised over the next 10 years.

The Institute of Taxation and Economic Policy conducted an analysis in which they calculated that the average income of the richest 1% in the country generates about $ 2.2 million per year. With the increase, they are expected to pay about $ 159,000 more per year in taxes.

The new tax conditions will come into effect from fiscal year 2022.

KEEP READING: