White House press secretary Jen Psaki on Thursday defended reports of a planned tax hike from President Joe Biden, arguing the wealthy could afford it.
Psaki cited Biden’s desire for trillions in increased government spending on child care, infrastructure, and free pre-school.
“His view is that, that should be on the backs, that can be on the backs of the wealthiest Americans who can afford it and corporations and businesses who can afford it,” she said.
The Dow Jones Industrial Average plunged 400 points on Thursday afternoon after Bloomberg reported details of Biden’s possible 43.4 percent capital gains tax hike for wealthy Americans.
Psaki did not deny the reported tax rates but said the administration was still working on the final details of the president’s plan.
She noted Biden supported the idea of boosting taxes.
“His view, and the view of our economic team, is that won’t have a negative impact,” she said.
Biden would not raise taxes on Americans making under $400,000 a year, Psaki asserted.