Biden is considering a major federal tax increase
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President Biden is now conceding that a tax increase is coming to pay for all of his new spending, though he’s still obfuscating who will pay. Mr. Biden campaigned on a pledge not to raise taxes on anyone earning less than $400,000 a year. He reaffirmed that threshold last week in an ABC interview.
“Anybody making more than $400,000 will see a small to a significant tax increase,” Mr. Biden told George Stephanopoulos. He added: “If you make less than $400,000, you won’t see one single penny in additional federal tax.”
White House press secretary Jen Psaki later conceded that the $400,000 threshold was for “families,” not individuals. So if you’re a two-income household making $200,000 each, you could get whacked.
This is a familiar tax bait and switch. Democrats promise they’ll tax only the rich, but there aren’t enough rich, and the rich don’t have enough money to finance the Democratic Party’s endless spending schemes. Millions of the Americans Mr. Biden wants to tax aren’t rich. They are successful Americans, typically at the peak of their earning lives, who might make $200,000 for a few years.
Watch closely as the Biden plans unfold in case Democrats try to slip in new taxes on energy, such as a gas or carbon tax, that would apply even to those who make less than $200,000. Eventually, perhaps in some debt-financing panic, they’ll press for a value-added tax on consumption as well. As everyone knows, the middle class is where the real money is, and sooner or later they’re coming after you.
