The tax provisions in President Biden’s 2024 budget proposal would raise incomes at the bottom of the income distribution while lowering them at the top, according to a new analysis by the Tax Policy Center.
The Biden plan “would raise average after-tax incomes for low-income households in 2024, leave them effectively unchanged for middle-income households, and lower after-tax incomes significantly for the highest-income taxpayers,” TPC’s Howard Gleckman wrote Thursday.
Households earning $31,000 a year or less would see their after-tax incomes rise by about 3.2%, or $600. Those earning between $60,000 and $107,000 a year would see little or no change. Top 1% households earning at least $1 million, however, would pay $300,000 more in taxes on average, an increase of about 14%. And those in the top 0.1% would see their tax bills rise by almost $2 million on average, resulting in a 20% reduction in their after-tax incomes.
“The president is nothing if not consistent,” Gleckman writes. “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. And, like it or not, that’s what his budget does.”