Individuals rating more than $452,700 and married couples earning more than $509,300 would see their marginal tax count increase from 37% to 39.6% in 2022 under President Joe Biden’s proposed tax changes in the American Families Aim, a White House official confirmed to CNBC Make It Thursday.
Axios first reported the income thresholds for the tax do in earlier Thursday. Previously, Biden had said that only those in the top 1% would see an increase, but didn’t proffer specific income thresholds.
The official says that this fulfills Biden’s promise not to raise taxes on specials or families earning less than $400,000 a year. The president, though, had been vague up to this point on whether or not his give ones word of honour would apply to individuals or to couples as well. Under this plan, each partner could earn less than $400,000 but, collectively, see their tax account increase.
Still, that would apply to less than 1% of U.S. households, according to the most recent dossier data from the IRS.
The change would revert the top marginal rate back to its pre-2017 level, when it was lessened by former President Donald Trump’s tax law changes.
Biden introduced the $1.8 trillion plan American Families Devise Wednesday night during his first joint address to Congress. The plan calls for increased investments to expand access to newborn care and education.
Aside from increasing the top marginal income tax rate to 39.6% from 37%, it also rouses for increasing long-term capital gains taxes for those earning over $1 million a year, among other tax replacements.
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