DETAILS OF TAXING THE RICH
May 14, 2021 - Douglas Myser
Details of taxing the rich. After campaigning on the promise to tax the rich to pay for more programs to advance social programs, President Biden President is doing just that. President Biden's ambitious spending plans would significantly increase what the federal government lays out for childcare and education and spend trillions more on infrastructure. It also comes with the biggest tax increase in decades. How big ? Taxation and Public Policy stated that President Biden's proposal would increase by more than $100,000 a year what someone in the top 1% of earners pays Uncle Sam. They may even need tax resolution services when Joe is finished. President Obama in 2013 raised taxes on that same group by $83,000. President Trump in 2017 cut their taxes by about $50,000 a year. The top 1% of Americans earn about 20% of all income in the U.S. but they pay nearly 40% of all federal income taxes. The Biden plan will put even more of the tax burden on the wealthy. "It's time for corporate America and the wealthiest 1% of Americans to just begin to pay their fair share." he said in a speech to Congress. Details of taxing the rich.
Proponents of President Biden's plan tax increases say America's richest citizens can afford to pay more. While $100,000 is real money, it will be paid by a group of people who earn an average of $2.2 million a year. What's more the share of taxes paid by the top 1% is actually down in recent years from 50% in 2014. "An income of $400,000 a year is not an extraordinary amount of money to my friends and the people in the professional network," said Charles Meyer, a former Wall Streeter who now runs the policy consulting firm Signum Global Advisors for institutional investors. "I have had to explain to my friends that Biden's plan is not as radical as the 1% says it is." Mr. Biden is proposing raising the top rate on income over $400,000 to 39.6%. That's what it was before Trump's tax cut in 2017 lowered the top rate to 37%.
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