WHAT WAS SAID
“I guarantee you, my word as a Biden, no one making less than $400,000 will pay a single penny more in taxes. Not a penny.”
— during a campaign rally in October 2020
Mr. Biden has not raised taxes for taxpayers under this threshold, as he had promised. He has instead focused on increasing taxes for corporations and those making more than $400,000. His budget proposal for fiscal year 2024, for example, proposed increasing the Medicare tax rate from 3.8 percent to 5 percent for income above $400,000.
But that is “not the complete story,” said William McBride, the vice president of federal tax policy at the Tax Foundation, a right-leaning think tank.
Some analyses estimate that tax increases on corporations could have an indirect effect on people throughout the income scale, Mr. McBride said, because the burden is often passed along, at least in part, to consumers and workers through, say, lower wages or stock values. While estimates differ, a 2022 Tax Foundation analysis found that, in the long run, the Inflation Reduction Act may reduce after-tax income by about 0.2 percent for most income groups — including those earning less than $400,000.
WHAT WAS SAID
“The Biden plan will repeal the existing law explicitly barring Medicare from negotiating lower prices with drug corporations.”
— 2020 campaign website