(TheLibertyRevolution.com)- For weeks, President Joe Biden has been calming the fears of some people around the country by saying his new infrastructure plan wouldn’t raise taxes on anyone who wasn’t making more than $400,000 a year.
On Friday, that suddenly changed. The president admitted that his plan, which is $2 trillion in total, would actually raise taxes on some people who earn $200,000 or more per year.
Biden’s press secretary, Jen Psaki, even confirmed that this would be true. She said recently that a household with two workers who earn $400,000 or more combined would actually see increased taxes under Biden’s plan.
She tried to justify the flip-flop, telling reporters recently that those who would be responsible for paying more in tax would be those who can afford it. She said:
“It is a once-in-a-generation investment in our economic future, a chance to win the future — paid for by asking big corporations, many of which do not pay any taxes at all, just to begin to pay their fair share. And it won’t raise a penny of tax on a family making less than $400,000 a year, no federal tax, no addition.”
While there’s a subtle difference in the way Biden has been explaining his tax increase and how Psaki explained it last week, that difference will be monumental to some. Last month, Biden told ABC News:
“If you make less than $400,000, you won’t see one single penny in additional federal tax.”
Of course, that’s now been proven to be not true. While $400,000 for a family may seem like a lot of money, it’s actually not in some areas of the country. In places with extremely high costs of living, for example, a household income of $400,000 might actually only be on the cusp of being affluent. These new taxes, therefore, could impact them significantly.
In addition to the additional personal taxes, Biden ‘s plan will raise taxes on corporations across the country. Biden continues to insist that this increase in corporate taxes will have no impact on business’ bottoms lines and, as a result, on the jobs they provide. He said Friday:
“Raising taxes, the studies show, will not slow the economy at all. Asking corporate American just to pay their fair share will not slow the economy at all. It will make the economy function better. It will create more energy.”
The big concern with increased corporate taxes are that businesses are already reeling from the COVID-19 pandemic and the effect various shutdowns and restrictions have had on them.
Billions of dollars in Paycheck Protection Program loans prove that there are many businesses across the country that are in need. The question, then, is whether increased taxes will finally do them in?
The corporate tax rate would increase to 28% under Biden’s proposal. The rate sat at 21% under former President Donald Trump, down from 35% under his predecessor, Barack Obama.
For now, both Psaki and Ron Klain, the White House chief of staff, said businesses would be able to handle the increased taxes. But, whether that’s true remains to be seen.