President Joe Biden has long claimed that any tax hikes he signs into law would not affect Americans earning less than $400,000 per year.
But in an apparent reversal, reports claim that if Biden inks his signature on the massive, $3.5 trillion budget reconciliation package currently being pushed through Congress by Democrats, his vow will have been for naught.
According to Breitbart, an independent analysis by the Joint Committee on Taxation (JCT) found “the House Ways and Means Committee’s portion of the $3.5 trillion infrastructure bill would increase taxes on Americans making over $50,000 or more per year in the calendar year 2031.”
Worse still, the JCT analysis determined that by the year 2027, some proposals would result in taxes being raised on American workers earning between $30,000 to $40,000 per year.
More tax hikes
Separately, CNBC reported that the House Ways and Means Committee has also considered a proposal that would substantially raise excise taxes on tobacco and nicotine products, from cigarettes to vapes, in order to raise some $100 billion over the next 10 years.
But those tax hikes would inevitably be passed along to consumers of these products, who reportedly tend to be of lower income.
“A tobacco tax is probably the most regressive tax out there,” Ulrik Boesen, a senior policy analyst at the Tax Foundation, told CNBC.
“There’s no question that it’s a tax on people earning less than $400,000,” Boesen said.
Subsidizing the wealthy?
Meanwhile, Republicans on the House Ways and Means Committee have been highlighting hidden carve-outs and tax credits for wealthy Americans that average working-class Americans would be unable to take advantage of under the new deal, as Breitbart notes.
— Mark Bednar (@MarkBednar) September 14, 2021
There are also said to be proposed loopholes that would benefit billionaire hedge funds, and there’s even a proposal to eliminate the cap on state and local tax (SALT) federal deductions, which would primarily benefit wealthy Americans living in blue states with high local and state tax burdens.
In other words, while Biden pledged to “tax the rich,” his fellow Democrats in Congress are scheming to do the exact opposite. But who’s surprised?