White House press secretary Jen Psaki on Monday defended House Democrats' tax plan in the face of criticism that the legislation would see taxes and consumer prices rise for many Americans. Psaki insisted President Joe Biden is committed to keeping taxes the same for anyone making less than $400,000 a year, and she called it "absurd" that companies would raise consumer prices in response to higher taxes.
"There are some ... who argue that, in the past, companies have passed on these costs to consumers," Psaki said. "We feel that that’s unfair and absurd, and the American people would not stand for that."
A number of economic studies have found that consumers bear approximately 31 percent of the cost of corporate tax increases through higher prices on consumer products.