Get All Access for $5/mo

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 Dan Bova

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

Dan Bova

Entrepreneur Staff

VP of Special Projects

Dan Bova is the VP of Special Projects at Entrepreneur.com. He previously worked at Jimmy Kimmel Live, Maxim, and Spy magazine. His latest books for kids include This Day in History, Car and Driver's Trivia ZoneRoad & Track Crew's Big & Fast Cars, The Big Little Book of Awesome Stuff, and Wendell the Werewolf

Read his humor column This Should Be Fun if you want to feel better about yourself.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Editor's Pick

Leadership

7 Telltale Signs of a Weak Leader

Whether a bully or a people pleaser who can't tell hard truths, poor leadership takes many forms.

Side Hustle

'Hustling Every Day': These Friends Started a Side Hustle With $2,500 Each — It 'Snowballed' to Over $500,000 and Became a Multimillion-Dollar Brand

Paris Emily Nicholson and Saskia Teje Jenkins had a 2020 brainstorm session that led to a lucrative business.

Business Ideas

63 Small Business Ideas to Start in 2024

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2024.

Living

70% of Small Business Owners Experience Monthly Burnout. Follow These 3 Rules to Avoid the Same Fate.

Here are three guidelines to help entrepreneurs achieve balance, growth and success in both their professional and personal endeavors.