Joe Biden and President Trump agree on the president̵7;s tax codes and tax returns.
The lawsuit: Biden voted in favor of Social Security taxation
Democratic candidate Joe Biden’s tax plan remains a sticking point for some voters. A meme posted on Facebook on September 15 states that Biden is not a friend of working people because of his tax voting history, as did his vote for a 1983 bill that allowed a 50% Social Security tax.
The former senator from Delaware also decided to vote on raising the Social Security tax rate to 85% in 1993, according to the meme.
“His record on voting on Social Security records in recent years is a slap in the face to retirees after another,” the claim said. “Now he wants to lease our 401k’s and IRA’s … and he also wants to introduce a 3% annual tax on our homes.”
Biden said he will increase the income tax bracket for families earning more than $ 400,000 a year as well as corporate taxes, according to a report from USA NOW.
More: Fact check: Biden tax plan raises rates for those earning more than $ 400K, corporations
USA TODAY reached out to the user for comment.
Did Biden vote to tax Social Security?
The Social Security Changes in 1983, which led to its taxation, were a controversial topic on the internet that the Social Security Administration added to the list of myths and misinformation.
Social Security benefits are “clearly excluded” from federal income taxation before Republican President Ronald Reagan signed the amendments to the law, according to the SSA. Up to 50% of benefits can be added to taxable income based on certain income thresholds from 1984, onwards.
A provision of the Omnibus Budget Agreement Act of 1993 increased the Social Security tax rate from 50% to 85% for households in a higher income bracket. This move was the first budget of Democratic President Bill Clinton and marked the highest peace-time tax hike among high-income earners in U.S. history up to that time, according to the University of California, Berkeley .
Biden voted to pass the amendments in 1983, according to records maintained by the SSA. GovTrack, a government transparency website, recorded Biden’s vote on the 1993 Act.
Individuals who report a combined income of between $ 25,000 and $ 34,000 may be liable for income taxes of up to 50% of Social Security benefits. For joint filers, the bracket is $ 32,000 to $ 44,000. Those with matching earnings or exceeding the higher level of each bracket can pay taxes up to 85% of the benefits, according to the SSA.
Did Biden propose taxation on 401 (k) s and IRAs?
The claim states that the Biden campaign proposes taxation on 401 (k) s and IRAs of retirees in addition to a 3% federal property tax.
“It’s on page 78 of the Dems platform,” the meme said.
But there is no indication of the proposed taxes on 401 (k) or IRA retirement accounts on the official website of Biden’s campaign. The Democratic presidential nominee said he wants the tax benefits to equal the retirement plan in terms of income, according to the Biden campaign.
Biden will do this by eliminating the current deduction for contributions while providing a 26% refundable credit on every dollar contributed to a traditional retirement account, according to The Tax Foundation. The credit credit will be deposited into the retirement account as a matching contribution.
In addition to increasing the tax on families in the top tax bracket, other proposed tax policies include increasing the corporate tax rate from 21% to 28%, a 15% minimum income tax on the book “to no corporation will lose out on paying taxes, “asking families to earn more than $ 1 million to pay investment income and investment taxes at the same rate and establish a real minimum tax on foreigners income of US companies while penalizing corporations that outsource jobs abroad.
More: Check the fact: The national property tax is not part of Joe Biden’s plan
Part of the claim states that Biden would suggest a 3% federal property tax that has been debunked by the USA NOW. Property taxes are collected at the state and local levels, according to the article.
Our rating: Slightly untrue
We rate this claim BY PART AGAIN, based on our research. As a senator, Biden voted in favor of two laws that allowed taxation on Social Security benefits. But Democratic presidential nominee Biden did not propose taxation on retirement accounts or a federal property tax.
Our reality analysis resources:
- USA NOW, September 17: “Fact check: Biden bidding plan will raise rates for earners over $ 400K, corporations”
- USA NOW, September 17: “Fact check: National property tax is not part of Joe Biden’s plan”
- GovTrack, accessed October 6: “HR 1900 (98th): 1983 Social Security Changes”
- GovTrack, accessed October 6: “HR 2264 (103rd): 1993 Omnibus Budget Agreement Act”
- University of California, Berkeley, The Bancroft Library, accessed October 6: “Omnibus 1993 Budget Reconciliation Act”
- GovInfo, accessed October 6: “103rd Congress in Session HR 2264, A Law”
- The Social Security Administration, accessed on October 6: “MYTHS AND MISSIONARIES ABOUT SOCIAL SAFETY- Part 2”
- Social Security Administration, access October 6: “Vote Tallies, 1983 Amendments”
- The Tax Foundation, August 26: “Biden’s Proposal Will Transfer the Distribution of Retirement Tax Benefits”
- Biden-Harris campaign, accessed October 6: “A WORD OF TWO ACCORDING TAX: TRUMP REWARDS WEALTH, BIDEN REWARDS WORK”
- Social Security Administration, accessed October 6: “Income Taxes And Your Security Benefits”
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