Connect with us

Economy

WH walks back Biden income tax promise from campaign

Published

on

Screen Shot 2021 03 18 at 12.53.33 PM scaled

During his presidential campaign and up until this week, President Joe Biden had repeatedly said that he would hike taxes for individuals making more than $400,000 per year. However, the White House recently walked back that promise by a dramatic margin.

At Wednesday’s daily press briefing, White House press secretary Jen Psaki clarified that Biden’s proposed tax increase would affect individuals who make $200,000 annually if they are married to a person who earns the same amount.

Psaki said that the proposed $400,000 threshold for tax increases applies to “families” instead of individuals. Though, she did not indicate a specific threshold for individual earners.

This doesn’t match what she had said at Monday’s briefing that: “The President remains committed to his pledge from the campaign that nobody making under $400,000 a year will have their taxes increased.”

Psaki’s clarification on Wednesday came later on the same day that Biden appeared to indicate that the cutoff for individuals’ income would be $400,000.

“Yes, anybody making more than $400,000 will see a small to a significant tax increase,” Biden told George Stephanopoulos in an interview on ABC’s “Good Morning America” that aired Wednesday.

“If you make less than $400,000,” the president added, “you won’t see one single penny in additional federal tax.”

Although, Biden conceded that Republican lawmakers will very likely be opposed to a drive to raise taxes.

“I may not get [Republican support], but I’ll get the Democratic votes for a tax increase. If we just took the tax rate back to what it was when [George W.] Bush was president—[when] the top rate paid 39.6% in federal taxes—that would raise $230 billion,” he said. “Yet they’re complaining because I’m providing a tax credit for child care for the poor, from middle class?”

No formal legislative package has been put forward yet, it should be noted.

Any tax hikes included in the legislation would likely take effect starting next year. However, some lawmakers are hesitant to raise rates until the economy sees a fuller recovery from the coronavirus pandemic, which has negatively affected millions of Americans’ incomes.

Nonetheless, in a report published Monday, unidentified people familiar with the matter reportedly told Bloomberg that Biden is aiming for it to be the first major tax increase since 1993 and provided some hints as to what might be included in such a proposal.

RELATED: Report: Biden planning first major tax increase in three decades

The proposed tax raises, according to the report, mostly resemble Biden’s proposals during the 2020 presidential campaign, when he promised to reverse former President Donald Trump‘s 2017 tax cuts on “day one” in the Oval Office.

The tax hike proposals reportedly either under consideration or currently planned include: raising the corporate tax rate to 28% from 21%; raising the income tax rate on individuals making over $400,000; paring back tax preferences for pass-through businesses, such as limited-liability companies or partnerships; expanding the estate tax; and establishing a higher capital gains tax rate for people making at least $1 million annually.

You can follow Douglas Braff on Twitter @Douglas_P_Braff.

Continue Reading

Economy

NYC bill trying to repeal ‘sanctuary city’ laws put in place by liberal Mayor Bill de Blasio

Published

on

new york city

New York lawmakers are introducing a bill this week to undo “sanctuary city” laws approved from 2014-2018 under then-Mayor Bill de Blasio, a Democrat. Council members Robert Holden (D-Queens) and Joe Borelli (R-Staten Island) told The New York Post they’ll introduce the bill Thursday.

Among the laws to be reversed include the prohibiting of the NYPD, and Correction and Probation departments from cooperating with U.S. Immigration and Customs Enforcement agents unless the cases involve suspected terrorists or serious public safety risks. It would also reverse rules prohibiting city agencies from partnering with ICE to enforce federal immigration laws.

“Sanctuary city laws put all New Yorkers, both immigrants and longtime residents, in danger by preventing the NYPD and DOC from working with ICE,” said Holden, a moderate Dem. “We do not need to import criminals, and only 23 years since 9/11, we have forgotten the deadly consequences of poor interagency communication. We must repeal these laws immediately.”

“Like most things in New York, sanctuary city policy is a social experiment gone off the rails,” said Borelli. “All the problems with these local laws came out during the public-hearing process, but the Council just stepped harder on the gas pedal.”

In February, Mayor Eric Adams called for the rules to be loosened so migrants “suspected” of “serious” crimes could also be turned over to ICE — as they once were under sanctuary city policies implemented as early as 1989 under ex-mayors Ed Koch and Michael Bloomberg.

Among public reasons for the push is the murder of Georgia nursing student Laken Riley.  If it wasn’t for the sanctuary city policies, Riley is among other deaths that could have been prevented if the policies were not in place, Holden and other critics have said.

The 22-year-old was found dead Feb. 22 on the University of Georgia’s campus, six months after her alleged killer Jose Antonio Ibarra, 26, was arrested in Queens and charged with endangering a child.

The Post explains of the case:

The NYPD had no choice but to cut the Venezuelan-born Ibarra loose — instead of turning him over to federal immigration officials — because he didn’t have any major crime convictions.

Council Speaker Adrienne Adams shot down the mayor’s idea just one day later, saying she and the rest of the Council’s progressive Democratic majority wouldn’t be considering any rule changes. The bill introduced this week is also likely to face objections from the Council’s left-wing Democratic majority.

Continue Reading

Trending