It's no surprise to see President Joe Biden go back on his word that, in spite of his plan to significantly hike taxes to pay for a portion of a massive increase in spending, nobody earning less than $400,000 annually would suffer a tax increase.
During the presidential campaign, then-candidate Biden declared that if someone makes less than $400,000, they wouldn't face any tax hikes.
His campaign website reinforced this promise: "Joe Biden will not raise taxes on anyone making less than $400,000. Period." The president recently reiterated his promise on "Good Morning America" when he said, "Anybody making more than $400,000 will see a small to a significant tax increase," and "You make less than $400,000, you won't see one single penny in additional federal tax."
His proposed tax hikes are estimated to reap $2.1 to $2.8 trillion.
Here's another reason why Biden was never going to be able to keep his promise: He already announced his intention to increase the corporate income tax from the current 21 percent to 28 percent.
The best explanation I've seen on this comes from a 2004 quote by economist Stephen Entin, who wrote, "The economic burden of a tax frequently does not rest with the person or business who has the statutory liability for paying the tax to the government." That's because taxes are ultimately only paid by people.
The bottom line is that nobody can determine who truly bears the burden of a tax just by looking at where or on whom it is formally imposed, despite what the tax is called.
https://reason.com/2021/04/01/biden-tax-hikes-on-rich-400000-cant-keep-that-promise/
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