He didn't say "read my lips," but President Joe Biden did pledge not to raise taxes on Americans making less than $400,000 per year. It was a theme of his campaign, and Biden has repeated it multiple times since taking office. But a new analysis based on data from the Joint Committee on Taxation finds the Democrats' $3.5 trillion "human infrastructure" spending bill would raise taxes on Americans making as little as $30,000 per year starting in 2027. The legislation would also raise taxes on those making $50,000 per year starting in 2031.
Zilvenas Silenas, economist and president of the Foundation for Economic Education (FEE), is not surprised at the analysis. "The rhetoric permeating the media that somehow the rich or someone else will pay for this, I completely don't buy," he tells KTRH. "I think many taxes that they are going to impose to pay for this in one way or another will find a way to higher prices and to consumers."
In a speech last week defending the Democrat spending plans, Biden insisted they were "paid for" and chided the "rich" and big corporations for not "paying their fair share." But their fair share could end up being all of our share. "There will be various taxes and surcharges officially directed at companies, corporations and shareholders," says Silenas. "But in the end, all these taxes find a way into consumer prices and into the costs of products, and in the end consumers pay."
Congress is set to vote on the spending plan September 27th. If it passes and he signs it, it's likely to be another broken promise from President Biden. "The rhetoric is that the rich are going to pay for it, but the reality is going to be that everyday Americans are going to pay for it," says Silenas.