(ConservativeHub.com) – President Joe Biden proposed a number of tax increases that would be focused on higher-earning people and entities. During a speech in Philadelphia, PA on March 9, Biden unveiled his budget plan. Among other things, the plan includes implementing over $5 trillion in tax increases in an effort to compensate for government spending. The New York Post reported that Shalanda Young, White House Budget Director, expects the plan to slash the budget deficit by almost $3 trillion.
During the State of the Union address in February, Biden had told lawmakers that his budget was going to help decrease the deficit while also protecting the Medicare Trust Fund by having the wealthy and large corporations “pay their fair share.”
According to The Hill, Biden had previously pledged that taxes on those earning less than $400,000 annually would not be increasing. Last week, the White House released its proposal for increasing the Medicare surtax from 3.8 percent to 5 percent for people who earn more than $400,000.
The new tax proposed by the President would affect wealthy households worth over $100 million. According to this plan, the wealthiest US citizens would have to pay a 25% minimum tax rate. In addition, the corporate tax rate would be raised from 21% to 28%. The marginal income tax rate would also be raised slightly to 39.6% from 37%.
Republicans however have said that Biden’s budget proposal is not going to get far. According to The Hill, Senate Republican Leader Mitch McConnell (Ky.) said that it is a good thing that the House is Republican because the President’s budget consists of “massive tax increases, more spending.” McConnell added that the American people are going to appreciate the Republican House for stopping Biden’s proposed tax increases.
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