New estimates from the nonpartisan Joint Committee on Taxation (JCT) reveal that Democrats’ reckless tax and spend spree would raise taxes on all Americans, a violation of President Biden’s promise to not raise taxes on anyone earning less than $400,000.
Biden and Vice President Harris made the $400,000 tax pledge a key part of their 2020 presidential campaign, clearly stating the commitment no less than 60 times.
More than half of tax burden will fall on individuals earning less than $400K
JCT’s distribution analysis found that taxes will increase on individuals by more than $54 billion in calendar year 2023.
Individuals earning less than $200,000 will account for nearly $17 billion of the tax hike.
Biden’s tax hike would raise another $14.1 billion from taxpayers earning between $200,000 and $500,000.
Roughly 98 percent of all tax returns filed by those in the $200,000 to $500,000 range are filed by those earning between $200,000 and $400,000, with at least three-fourths of the income in the $200,000 to $500,000 category also coming from those below $400,000.
Not only is the tax hike a violation of Biden’s tax pledge, it puts the majority of the burden on individuals earning less than $400,000. Those are taxpayers Biden promised would not see a single penny of tax increases.
Every income group will see a tax increase
JCT’s analysis notes that federal taxes will increase from every income group. Even filers with incomes between $0 and $10,000 would see their average tax rate increase from 7.3 percent to 7.6 percent.
Energy tax hikes
JCT also estimated the cost of two energy tax hikes in Democrats’ bill that would raise energy prices for all consumers.
The crude oil tax that would result in higher gas prices is estimated to cost taxpayers $12 billion dollars while the increase in excise tax on coal production is estimated to increase taxes by $1.2 billion.