President Biden said in an interview with ABC News’s George Stephanopoulos that he wants households making more than $400,000 to see “a small to a significant tax increase” and that he thinks he can get votes from congressional Democrats for the tax hikes.
“Anybody making more than $400,000 will see a small to a significant tax increase,” Biden said in an interview that aired on “Good Morning America” Wednesday. “If you make less than $400,000, you won’t see one single penny in additional federal tax.”
When White House press secretary Jen Psaki was asked later in the day what Biden meant by small-to-significant, she said that a tax increase would be larger for a family making well above the $400,000 threshold.
“It depends on how much money you make. Are you a billionaire? Then you may pay more in taxes than a family making $425,000,” Psaki told reporters at a press briefing. “There is going to be a range in any tax proposal.”
Biden and congressional Democrats have expressed interest in pursuing a jobs and infrastructure package, and tax increases on the wealthy and corporations could be used to help offset the cost of such a bill. The details of a potential infrastructure bill have not yet been crafted, and Psaki didn’t give a timeline of when the president would propose tax increases.
During his presidential campaign, Biden offered several proposals to raise taxes on businesses and high-income Americans, such as raising the corporate tax rate from 21 percent to 28 percent and raising the top individual tax rate from 37 percent to 39.6 percent. He pledged to not raise taxes on people making under $400,000 annually.
Republicans are criticizing the prospect of raising taxes to pay for an infrastructure bill, arguing the tax increases would hurt the economy.
Some Democrats have said they want to pursue infrastructure legislation on a bipartisan basis, and tax increases would likely jeopardize the ability for any bill to get GOP support. Some Democrats have also expressed a reluctance to increase taxes during an economic downturn.
When Stephanopoulos asked Biden if he’ll get Republican votes for a tax increase, Biden said, “I may not get it, but I’ll get the Democratic votes for a tax increase.”
Biden criticized Republicans for taking issue with his $1.9 trillion coronavirus relief law. The president said the benefits in the law, such as the $1,400 direct payments and expanded tax credits for families with children, go to low- and middle-class households that are in need of relief.
“All these tax breaks go to the bottom 60 percent of the population,” Biden said. “And guess what? They need it.”
Morgan Chalfant contributed.
Updated at 4:41 p.m.