Biden says he plans to propose 'small to significant' tax hike for Americans making above $400,000

President Joe Biden
Posted at 2:23 PM, Mar 17, 2021

In an interview that aired Wednesday, President Joe Biden said he plans to propose a tax hike on the wealthiest Americans as part of his next legislative effort.

In the interview, Biden was asked by George Stephanopoulos of ABC News what is next on his legislative agenda now that the $1.9 trillion COVID-19 stimulus package has been passed. Biden noted that his plan wasn’t popular with Republicans because most of the benefits in the bill “go to the bottom 60% of the population.”

He then noted that in a tax bill instituted by the Trump administration 83% of cuts “went to the top 1% of the people in America.”

When asked by Stephanopoulos if Biden planned to raise those taxes, Biden responded with a “yes.”

“Anybody making more than $400,000 will see a small to a significant tax increase. If you make less than $400,000, you won't see one single penny in additional federal tax,” Biden said.

According to CNN, 10% of Americans currently earn more than $400,000 a year.

Biden floated several proposals to raise taxes on wealthy Americans during the campaign. According to NBC News, some of those proposals included raising the corporate tax rate from 21 % to 28% and restoring the top individual income tax rate to 39.6%, up from 37%.

CNN reports that White House press secretary Jen Psaki on Monday said that Biden thinks that "those at the top are not doing their part" and that corporate tax rates should be higher.