4. High-Income Earners Might Pay More Taxes
As part of the budget proposal for the financial year 2024, the Biden Administration protects workers earning less than $400,000 per year, pointing out that “no one making less than $400,000 per year will pay new taxes.” However, there are new taxes proposed for high-income taxpayers and wealthy people.
Medicare taxes would be increased for Americans earning over $400,000. This increase would boost the tax rate from 3.8% to 5% on both earned and unearned income over $400,000. This would obviously help fund Medicare benefits further.
Moreover, there’s a proposed wealth tax on people worth over $100 million, and if it’s approved, the federal government will impose a 25% minimum tax on income. This will definitely be a hot topic, as “taxing the rich” is always a delicate matter, and this summer may bring some of the biggest debates around this proposal.
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