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White House press spokeswoman Jen Psaki said Friday that President Joe Biden’s $ 1.75 trillion social investment plan will not increase taxes for middle-class Americans, despite a new report pointing to otherwise.
The nonpartisan organization Tax Policy Center warned that the “Build Back Better Act” could lead to between 20% and 30% of middle-income households pay more contributions in 2022. This contrasts with the campaign promise of President Joe Biden and his team that those who earn $ 400,000 or less a year will not pay more for this concept.
Asked by Fox’s White House correspondent Jacqui Heinrich on the matter, Psaki denied that the infrastructure plan entails a tax increase to the middle class.
“Not really,” said the spokeswoman on Friday.
The official argued that the report shows that an average family with children that generates between $ 75,000 and $ 100,000 a year will receive a tax cut of approximately $ 2,230.
“(The report) shows that the average taxpayer with incomes of more than $ 1 million a year will see income taxes increase by $ 65,000. 75% of the tax cut will go to families with incomes less than $ 200,000 a year with 54 million families with incomes of less than $ 200,000 a year receiving a tax cut ”, stated the press secretary.
“Most economists agree with us,” Psaki said. “Build Back Better will clearly lower taxesIt will lower costs, increase wages and increase economic growth for the middle class, ”he said.
In its report, the entity specializing in tax issues stated that the increases in households considered middle class will be minimal. However, the different starting and ending periods of various provisions in the legislation will cause a changing tax scenario for Americans.
As an example they mention the expansion of the “Child Tax Credit” that expires after 2022, and the minimum corporate income tax that will not go into effect until 2023.
This Friday, the spokesman for the minority in the federal Senate, Mitch McConnell, said that the final version of the $ 1.75 billion legislation It will be written by conservative Democrats Joe Manchin and Kyrsten Sinema, who have imposed multiple jobs on the efforts of the most progressive in the Legislature to usher in the Biden Administration’s plan.
“The House legislation will come, (Chuck) Schumer will offer a replacement, and the replacement will be written by Joe Manchin and Kyrsten Sinema,” the spokesman said in an interview with “Flyover Country with Scott Jennings.” “If there is no replacement project, this would mean that neither of us will come on board,” he said.
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Eddie is an Australian news reporter with over 9 years in the industry and has published on Forbes and tech crunch.