President BidenJoe BidenThe Hill’s Morning Report – Presented by Facebook – Biden to hit road, tout COVID-19 relief lawOregon senator takes center stage in Democratic filibuster debateThis week: Democrats eye next step after coronavirus relief bill win MORE is reportedly planning the first major hike in federal taxes in almost 30 years to fund the economic program set to follow the recently approved $1.9 trillion pandemic stimulus package.
Unidentified sources told Bloomberg that the increases will reflect the promises Biden made during his 2020 campaign.
The planned increases reportedly include: raising the corporate tax from 21 percent to 28 percent; increasing the income tax rate on people making over $400,000; expanding the estate tax; paring back tax preferences on pass-through businesses such as limited-liability companies; and setting up a higher capital-gains tax rate for individuals making at least $1 million.
As Bloomberg notes, an independent analysis of the Biden campaign’s tax plan conducted by the Tax Policy Center found that it would raise around $2.1 trillion over 10 years.
Tax hikes included as part of infrastructure and job packages will likely include repealing part of former President TrumpDonald TrumpThe Hill’s Morning Report – Presented by Facebook – Biden to hit road, tout COVID-19 relief lawOregon senator takes center stage in Democratic filibuster debateJuan Williams: Trump’s jealous rants can’t hide his failuresMORE’s 2017 tax law that benefitted corporations and wealthy individuals, the news outlet notes, citing sources close to the matter.
His whole outlook has always been that Americans believe tax policy needs to be fair, and he has viewed all of his policy options through that lens, former Biden economic aide Sarah Bianchi told Bloomberg. “That is why the focus is on addressing the unequal treatment between work and wealth.
Any tax increases that are passed would likely take effect beginning in 2022, according to Bloomberg, which noted some lawmakers have called for the administration to hold off as pandemic-related unemployment remains high.