Biden’s American Families Plan Comes With a Big Tax Hike. Here’s Who Could Pay More

 

 

 

 

 

International Assets Advisory, LC  Advisor Aaron Leak weighed in about potential new tax legislation proposed by the Biden Administration, in an article written by Julia Glum for Money Magazine, image by Getty Images. To find out more, read the whole article here: https://money.com/biden-american-families-plan-higher-taxes/?xid=moneyrss 

Whose taxes will rise under Biden?

Biden said in a March interview that “anybody making more than $400,000 will see a small to a significant tax increase.” White House economic adviser Brian Deese described the federal income tax rate adjustment in more concrete terms at a press briefing. “This change will only apply to three-tenths of a percent of taxpayers, which is not the top 1%; it’s not even the top one half of 1%,” Deese said. “We’re talking about three-tenths of a percent; that’s about 500,000 households in the country.”

Whose taxes won’t go up?

On the campaign trail and in a November tweet, Biden said that “no one making under $400,000 will see their taxes go up.” Deese elaborated during the briefing, explaining that for some “150 million households in the country, this is not a change that will be relevant.”

There has also been some confusion around what Biden means when he says “no one” and “anybody” — in other words, whether that $400,00 threshold applies to both individual taxpayers and households, just one, or some other configuration.

All we know for certain is that “the tax code is going to be long, it’s going to be big, it’s going to have a lot of things in it,” says Aaron Leak, wealth manager at ECL Private Wealth Management in Chicago.