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Kimberley Wash – Washington Councilor Forbes
Joseph Biden ran on the promise to increase taxes for wealthy Americans and companies. His tax plans for the basic level increase taxes for those earning over $400,000 and reduce rates for corporate taxes from 21 percent to 28 percent.
While his tax plan can have an impact on those who are the wealthier Americans but low and middle-income households can be able to benefit from tax credits that are increased.
To better understand the effect of Biden’s tax policy on your tax bill, you can use our calculator here to figure out the amount you’ll have to pay under Biden’s tax plan.
Are the Federal Fiscal Brackets Change?
Anyone who earns more than $400,000 per year can expect a major shift under Biden’s tax policy. Based on Tax Policy Center Tax Policy Center, if you earn 790,000 dollars plus, then you could anticipate paying an average tax of 16% on your post-tax earnings. Additionally, the tax rate for the highest tax bracket will fall from 37 percent to 39.6 percent.
If you earn more than 1,000,000, you’ll see an increase in the capital gains tax rates which is a specific tax imposed on assets that are held for longer than one year. In addition, Biden proposes a tax limitation of 28% on deductions that are itemized and the removal of the qualified business income tax deduction for those earning over $400,000.
