Anyone making over $400,000 will see “a small to significant” tax increase, President Biden revealed in a new interview Wednesday.
Speaking to ABC’s “Good Morning America,” the commander-in-chief made the admission after being asked if he would raise taxes on those who benefitted from former President Trump’s tax cuts.
“Yes, anybody making more than $400,000 will see a small to a significant tax increase,” Biden said, adding his promise that, “If you make less than 400,000 you won’t see one single penny in additional federal tax.”
Asked if he could get Republican votes for a tax increase, the president did not sound optimistic, but said that wouldn’t derail his effort.
“I may not get it, but I’ll get the Democratic votes for a tax increase. If we just took the tax rate back to what it was when [George W.] Bush was president — [when] the top rate paid 39.6 percent in federal taxes — that would raise $230 billion. Yet they’re complaining because I’m providing a tax credit for childcare for the poor, from middle class?”
Biden, who was elected on a platform of bipartisan, national unity, has not secured any legislative wins thus far that have included GOP backing.
His desire to raise the federal tax rate from 37 percent to 39.6 for those making over $400,000 is unlikely to attract Republican support, but is consistent with his 2020 campaign platform.
The president also still stands by his desire to up the corporate tax rate from 21 percent to 28 percent.
Critics of Biden’s tax proposals during the 2020 election cycle warned that if successful, his efforts could lead to a decline in wages and investment income for middle class Americans.
Democrats, meanwhile, have argued that reducing taxes for higher earners does not lead to revenue trickling down.
Biden’s answer on the topic on GMA came as reports continue to circulate that his administration is in the midst of planning the first major tax hike since 1993 to help finance initiatives on infrastructure, climate and for continued assistance to America’s poor.
The plan is widely expected to include that 28 percent corporate income rate hike.
Treasury Secretary Janet Yellen signaled to CNBC last month that a tax increase could be in the cards later in the year as part of a legislative package.
The effort would “involve spending and investments over a number of years” on measures like infrastructure and education, she said, “And probably tax increases to pay for at least part of it that would probably phase in slowly over time.”