President Biden
Joe Biden The Hill’s Morning Report – Presented by Facebook – Biden to hit road, tout COVID-19 relief law Oregon senator takes center stage in Democratic filibuster debate This week: Democrats see next step after coronavirus bill win MORE reportedly plans the first major federal tax hike in nearly 30 years to fund the economic program following 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: an increase in corporate tax from 21 percent to 28 percent; increasing the income tax rate for people who earn more than $ 400,000; extension of inheritance tax; reducing tax preferences for pass-through companies, such as limited liability companies; and instituting a higher capital gains tax rate for individuals who earn 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 bring in about $ 2.1 trillion over a 10-year period.
Tax increases included as part of infrastructure and job packages are likely to include a withdrawal of some of the previous ones President Trump
Donald Trump The Hill’s Morning Report – Presented by Facebook – Biden to hit road, tout COVID-19 relief law Oregon senator takes center stage in Democratic filibuster debate Juan Williams: Trump’s jealous rants can’t hide his failures MOREThe 2017 tax law that benefited businesses and high net worth individuals, notes the news outlet, citing sources close to the case.
“His whole vision has always been that Americans believe that tax policy should be fair, and he has looked at all of his policy options through that lens,” Sarah Bianchi, Biden’s former economic assistant, told Bloomberg. “Therefore, the focus is on tackling the inequality between work and wealth.”
Any tax hike passed would likely take effect from 2022, according to Bloomberg, who noted that some lawmakers have called on the government to delay, as pandemic-related unemployment remains high.