Biden tax plan expands marriage penalty for some wealthier two-income couples on combined income north of $509K bloomberg.com/news/articles/…
Admin says tax hike will hit ~1% highest earning taxpayers + corps. The big cap gains hike is limited to taxpayers with income exceeding $1M/Year - about 0.3% of taxpayers.
There's an existing marriage penalty for some very high-income couples written into Trump's tax law.
The way marginal tax rate hikes work, it's on income exceeding those thresholds, not the whole amount. A couple making, say $530K would see a much smaller overall tax hike than someone making, say, $9 billion.
There are some proposals I've seen, though not from lawmakers, to bring back thinks like Pease which effectively would create a higher marginal tax rate bubble by shrinking deductions above a certain threshold...
Fun fact: The highest marginal tax paid this year is likely couples with children with, say, $155K income. Their effective *marginal* tax rate can exceed 100% of the phaseout of the $1,400 checks, etc.
• • •
Missing some Tweet in this thread? You can try to
force a refresh
This viral tweet is fake. Senator Ernst's poster had "TAX INCREASE" not "SEX BLIMPS" on her Liberal Fantasy Island poster. Several of the other items are doctored too.
Biden wanted a massive COVID relief package; it was a selling point in the GA Senate races. He proposed massive infrastructure, carbon, health, etc plans.
They were on his campaign website.
He telegraphed tax hikes on people making >$400K and corporations.
Republicans make $568B, 5-year counter-offer to Biden:
* more for roads and bridges
* no corporate tax hike, no SALT rollback bloomberg.com/news/articles/…
GOP *very* vague on payfors:
* tax electric cars
* rescind unspent money (previous COVID relief, etc.)
* no increase in federal debt
* user fees floated
* oppose undoing 2017 tax law and raising business taxes
They also specifically oppose any attempt to nix the $10K cap on SALT GOP created in 2017 tax law — a potential sticking point given some House Ds are insisting on high-test SALT.