Taxes 2023: Here’s how your tax bill could change under Biden’s budget

HTML tutorial

What’s in Biden’s budget plan?

Biden’s budget plan calls for increasing taxes on the wealthy


When President Biden earlier this month released his budget for the next fiscal year, his priorities included raising trillions of dollars in taxes to help reduce the federal deficit by almost $3 trillion over the next decade.

Now, the Tax Policy Center has analyzed the budget and estimated the impact on U.S. taxpayers based on their income. Some lower-income Americans could end up benefiting, while the wealthiest households could see a significant increase their tax burden, the think tank said.

To be sure, Mr. Biden’s budget isn’t set in stone — instead, it reflects a starting point for negotiations with lawmakers, who ultimately craft and pass spending bills and new tax laws. But the White House’s push to raise taxes on the wealthy reflects a push to place a higher burden on the richest Americans in order to increase funding for education, housing and health care, among other priorities. 

“As Biden has made clear since his 2020 campaign, he wants to raise taxes substantially on high-income households and corporations and provide modest tax cuts to low- and moderate-income households,” wrote Tax Policy Center senior fellow Howard Gleckman in a blog post. “And, like it or not, that’s what his budget does.”

Many middle-class families would effectively see no changes in their after-tax income under Biden’s proposed budget, according to the analysis. 

The biggest lever hiking taxes on high-income households is tied to the Biden administration’s proposal to boost the highest rate on capital gains taxes from 20% to 39.6%, the Tax Policy Center noted. 

What the Child Tax Credit is and who qualifies for it


The proposed budget also includes a 20% minimum tax on people with more than $100 million in wealth, but the Tax Policy Center notes that would affect only about 20,000 U.S. households. Still, the impact “would be substantial,” it noted.

Lower-income households would see a benefit from a proposed expansion of the Child Tax Credit and the Earned Income Tax Credit, the group noted.

Related Posts

pilots american airlines

Will a pilot strike disrupt summer travel plans?

Contract negotiations are keeping thousands of commercial pilots grounded at a time when the nation will soon be entering the busy summer travel season.  The union representing…

gettyimages 1252139760

PacWest shares crumble as Wall Street shuns midsize banks

In what is by now a familiar pattern, the fate of another regional lender hangs in the balance as investors bail from the sector following the sudden…

gettyimages 1486152320

New York becomes the first state to ban gas stoves in new residential building construction

New York bans natural gas in new buildings What New York’s natural gas ban means for other states 05:00 New York has officially become the first U.S….

atlanta shooting suspect

Atlanta active shooter: 1 killed, 3 injured in Midtown and no suspect in custody, police say

CBS News Live Live At least one person was killed and at least three others were injured in a shooting Wednesday at a medical building in Atlanta,…

0503 cbsm wgastrike preston 1936300 640x360

Film and TV production halted after Hollywood writers go on strike

Film and TV production halted after Hollywood writers go on strike – CBS News Watch CBS News The Writers Guild of America has gone on strike, disrupting…

gettyimages 1248351523

Hazardous sites in California at risk of severe flooding due to rising sea levels, study finds

More than 100 hazardous industrial sites on California’s coast are at risk of flooding severely — and spreading contaminants — due to rising sea levels if climate…

Leave a Reply

Your email address will not be published. Required fields are marked *