April 03, 2023

Biden’s Budget Would Raise Taxes On Top .1%, Cut Them For Many Others

According to a new analysis by the Tax Policy Center, President Biden’s fiscal year 2024 budget would raise average after-tax incomes for low-income households — those who earn about $31,000 or less — by nearly $600, or 3.2%, next year. The budget would leave the incomes of middle-income households — those making between about $60,000 and $107,000 — effectively unchanged, and would lower after-tax incomes significantly for the highest-income taxpayers.

The top 1 percent, who take home at least roughly $1 million in income, would pay an average of $300,000 more than under current law, dropping their after-tax incomes by 14%. Those in the top 0.1 percent would pay almost $2 million more on average, a 20% reduction in after-tax incomes. The biggest single source of tax hikes on high income households is Biden’s proposal to raise the top rate on capital gains from 20% to 39.6%.

“President Biden has been very clear that he would not raise taxes on lower and middle-income households,” said Joseph Peters, Jr., Secretary-Treasurer of the Alliance. “His changes to the tax code code would go a long way in addressing income inequality by asking the top .1%, those who can most afford to contribute more, to pay their fair share.”