President BidenJoe BidenThe Hill’s Morning Report – Biden Officials Prepare for the Worst Despite Vaccine Data Congress tries to contain Biden’s warring forces. Democrats take the vote. GOP yells foul MORE Reportedly plans the first major federal tax hike in nearly 30 years to fund the economic program that will follow up on the recently approved $ 1.9 trillion pandemic stimulus package.
Unknown sources told Bloomberg that the increases will reflect the promises Biden made during his 2020 campaign.
The planned increases reportedly include: corporate tax increase from 21 percent to 28 percent; Increase in income tax rate for those earning more than $ 400,000; Expansion of inheritance tax; Reducing tax preferences for pass-through companies such as limited liability companies; and establishing a higher tax rate on capital gains for individuals earning $ 1 million or more.
The Hill has asked the White House for comment.
As Bloomberg notes, an independent analysis of the Biden campaign’s tax plan, conducted by the Tax Policy Center, found it would raise approximately $ 2.1 trillion over a 10-year period.
Tax increases included as part of infrastructure and job packages are likely to include lifting some of the earlier ones President TrumpDonald Trump The Hill’s Morning Report – Biden Officials Prepare For The Worst Despite Vaccination Dates Trump launches the official website of the 45th President’s Judge. The Ohio professor can sue the university for no longer using the student’s preferred pronounThe news agency noted the tax law of 2017, from which companies and wealthy private individuals largely benefited, citing factual sources.
Biden had said during his campaign that he would lift Trump’s tax cuts on the “first day” of his administration, although he has not yet done so.
Democratic lawmakers have raised some concerns about supporting a tax hike. Moderate Democratic Senator Joe ManchinJoe Manchin Democrats Vote for Infrastructure Tax Hikes Graham says he owns AR-15 to protect his home from gangs. The Hill’s Morning Report – Biden to talk about infrastructure amid the border and MORE VOTE controversies (W.Va.), which has quickly become a key vote in Congress, previously told The Hill that he found the lifting of Trump’s tax cuts “ridiculous”.
He later went back on his remarks and said, “Everything is open to discussion.”
“His whole point of view has always been that Americans believe tax policies must be fair, and he’s looked at all of his policy options through that lens,” former Biden economic assistant Sarah Bianchi told Bloomberg. “That is why the focus is on combating inequalities between work and wealth.”
Any tax increases that are passed are expected to take effect from 2022, according to Bloomberg. Some lawmakers have urged the government to hold back as pandemic-related unemployment remains high.
An anonymous Democratic House member told The Hill in February that they did not believe the government should raise taxes.
“People would accept that corporate tax should be raised a few points, but beyond that there will be problems, especially in the middle of an economic crisis,” said the then lawmaker.
Republicans are expected to tackle any proposed tax hikes, although Bloomberg notes that there are some measures they may be leaving behind, such as moving from a gasoline tax to a charge for vehicle miles.
GOP lawmakers may also support tax incentives that discourage U.S. companies from moving jobs and profits out of the country, although they may not support penalties against such companies.