Hiking taxes on households making more than $400,000 ‘is a priority’: Biden official

Acting President Biden is sticking to a campaign pledge to hike taxes on those households making more than $400,000 to help pay for various new social safety net programs, a Biden administration official told Yahoo Finance Live.

“That definitely has been the red line. It continues to be the red line. It is a priority of the president,” said Council of Economic Advisers member Heather Boushey, when asked about the $400,000 dividing line.

Biden unveiled his $2.3 trillion infrastructure plan on Wednesday. Dubbed the “American Jobs Plan,” Biden is aiming to invest $621 billion into transportation infrastructure, including the repair of roads, bridges, transit and rail. More than $300 billion will be spent to replace lead water pipes and upgrade sewers, invest in broadband access and improve the power grid. The infrastructure plan is seen being mostly paid for by lifting the corporate tax rate to 28% from 21%.

A city street is closed for repairs and upgrades,Thursday, April 1, 2021, in Orlando, Fla. As part of an infrastructure proposal by the Biden administration, $115 billion is earmarked to modernize the bridges, highways and roads that are in the worst shape. (AP Photo/John Raoux)

A city street is closed for repairs and upgrades,Thursday, April 1, 2021, in Orlando, Fla. As part of an infrastructure proposal by the Biden administration, $115 billion is earmarked to modernize the bridges, highways and roads that are in the worst shape. (AP Photo/John Raoux)

But in the coming weeks, Biden is expected to outline a new $2 trillion plan for investments in child care, family tax credits and other domestic programs. This plan will reportedly be funded by lifting taxes on those households earning more than $400,000 a year, as Biden frequently stated during is presidential campaign. In a mid-March press briefing, White House press secretary Jen Psaki confirmed the hikes will target households with income of $400,000 or more instead of individuals.

Numerous other tax hikes from the Biden administration could also be in the cards, as Stifel’s Chief Washington policy strategist Brian Gardner recently told Yahoo Finance Live.

“The tax package that was announced as a part of the Made in America tax plan focuses on corporate profits. What it does is it seeks to readjust our corporate tax system to focus on making things here in the United States and to not encourage firms to ship profits overseas or production overseas and to make sure we have a tax system that’s fair and taxes to make these investments that benefit every family in America,” Boushey explained.

 

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