Biden to Raise Tax on Wealthy, Guarantees If You Make Less Than $400,000 You Won't 'Pay a Penny More' In an interview, Biden revealed more details about his tax proposal.

By Entrepreneur Staff

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Sean Rayford | Getty Images

During an interview with CBS News, Joe Biden said no one making less than $400,000 would pay "a penny more" with his tax plan.

"That's a guarantee, a promise," he said.

Biden's plan will undo President Trump's tax cuts for corporations and wealthy Americans. He explained that he believes taxes are a "moral issue" and that his plan is the most effective way to balance wealth inequality in America. Biden explained that the increased taxes would be used to help pay for several trillion dollars in new spending over the next decade.

Related: Trump Hits Biden on Raising the Minimum Wage

When CBS news anchor Nora O'Donnell asked whether it was a good idea to raise taxes when the U.S. economy is struggling, Biden responded, "Depending who you're raising them on," adding, "Look, if you're raising 'em on somebody who's makin' $1 billion a year, it's not a problem that they pay 39.6%, which everybody should pay, raise another $90 billion."

Impact to small businesses

Small businesses file as individuals and would be subject to higher tax rates (the top bracket rising to 39.6% from 37%.) Other aspects of the Biden tax plan include:

  • Individuals will pay the same tax rate on capital gains as their salaries
  • Increase in inheritance tax from 40% to 45%
  • Inheritance taxable income threshold would lower from $11.5 million to around $5 million

Read the full analysis at Fox News

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