By: Khagesh KG
April 26 2021
The tax hike will not affect everyone earning over $200k, but those whose family earnings exceed $400k may come under the ambit.
The tax hike will not affect everyone earning over $200k, but those whose family earnings exceed $400k may come under the ambit.On March 17, U.S. President Joe Biden reiterated his promise to raise the federal tax from 37 percent to 39.6 percent for Americans earning more than $400,000 per year. He assured the public that anyone earning less than $400,000 would not pay "one single penny" in additional federal tax. However, White House press secretary Jen Psaki explained that Biden's planned tax hike applies to couples rather than individuals, meaning that individuals earning $200,000 a year could be affected if their spouse earns the equivalent amount. Psaki did not define the threshold for individual workers. Biden's proposal would also increase the corporate tax rate from 21 percent to 28 percent and reverse the top marginal rate cut to 39.6 percent. However, a formal order has not yet been released, and the eligibility for the hike is still unclear.