Joe Biden 401k Tax Plan, Will Raise Your Taxes ?

Fact check:

Biden voted Social Security tax, seeks to reform retirement plans

The claim:

Biden voted to tax social security

For certain people, Democratic presidential nominee Joe Biden 's tax package is a stumbling point. A meme posted on Sept. 15 on Facebook says Biden is no supporter to working people because of his tax voting background, including his support for a 1983 bill approving a 50% tax on social security.

joe biden

Delaware 's former representative was also the decisive vote in 1993, according to the meme, to increase the Social Security tax limit to 85%.

"His record on Social Security documents over the years is one hit in the face of retirees after another," the assertion says. "Now he wants to tax our 401k's and IRA's ...... and he wants to impose an annual 3% tax on our properties."

Biden said he will increase the federal tax bracket for households making over $400,000 a year as well as corporate taxes.

Did Biden vote Social Security tax?

The 1983 Social Security Amendments, which contributed to its taxes, is such a controversial internet subject that the Social Security Administration added it to its list of myths and misconceptions.

Social security payments were "explicitly exempt" from federal income tax until, according to the SSA, Republican President Ronald Reagan signed the amendments. From 1984, up to 50% of compensation could be added to taxable income depending on such income levels.

A 1993 Omnibus Budget Reconciliation Act amendment increased the tax rate for families in a higher wage class from 50 percent to 85 percent. According to the University of California , Berkeley, the act was Democratic President Bill Clinton's first budget and marked the largest peace-time tax hikes on high-income earners in U.S. history to the time.

Biden voted for the 1983 amendments, according to SSA documents. GovTrack, a government accountability platform, registered Biden's vote on the 1993 Act.

Individuals claiming a combined income of $25,000 and $34,000 could be responsible for income taxes up to 50% of Social Security payments. Joint filers' bracket is $32,000 to $44,000. According to the SSA, anyone whose earnings equal or surpass each bracket's upper tier will pay tax on up to 85% of benefits.

Biden suggested taxing 401(k)s and IRA's?

The allegation alleges that the Biden campaign recommends taxing 401(k)s and IRAs for retirees, in addition to 3% federal property tax.

"It's on Dems' website list 78," says meme.

But on Biden's official campaign webpage, there's no hint of proposed taxes on 401(k) or IRA retirement plans. According to Biden's campaign, the Democratic presidential candidate said he needs to equalize retirement account tax payments across income scale.

According to The Tax Foundation, Biden will do this by removing the existing contribution deduction while providing a 26% refundable tax credit for each dollar added to a typical retirement account. The tax credit is deposited as a reciprocal contribution into the savings account.

Aside from hiking family incomes in the highest tax bracket, other suggested tax proposals include hiking the corporate tax rate from 21% to 28%, a guaranteed 15% tax on book revenue "such that no business gets away with paying no incomes," asking households making more than $1 million to pay wage and investment income taxes at the same rate and setting a real minimum tax on U.S. c.

The portion of the argument that Biden will recommend a 3 percent federal property tax has already been refuted. State and local property taxes are collected, according to the report.

Our rating: partially incorrect

We rate this argument Partially FALSE from our study. As a senator, Biden voted for two laws allowing taxation of social security payments. But Democratic presidential candidate Biden has not suggested taxing retirement or state property taxes.