President Joe Biden is planning the first major federal tax hike since 1993 to help fund a long-term economic program to follow the passage of the $ 1.9 trillion COVID-19 bill, the report said.
Source of familiarity in discussions said Biden’s Bloomberg administration plans to introduce tax increases similar to those included in the presidential campaign proposals.
The tax increase is likely to return the President’s share Donald Trump’s tax law from 2017, which has benefited corporations and other wealthy Americans, among other changes.
According to sources, the increases include: an increase in corporate tax from 21% to 28%, recall of tax preferences for businesses passed including limited liability companies or partnerships, an increase in the tax rate in income for Americans who make more than $ 400,000, an expansion of the estate tax reach, and the creation of a higher tax rate that raises capital for Americans who earn at least $ 1 million.
Bloomberg cited an independent Tax Policy Center review indicating the Biden campaign tax plan would collect $ 2.1 trillion over a decade. However, Bloomberg said the Biden administration’s plan is “probably smaller.” The publication suggests that the plan, if approved, could take effect in 2022.
Republicans expressed their determination to keep Trump’s tax law in 2017, especially during the coronavirus pandemic.
Rep. Kevin Brady (R-TX), the leading Republican on the House Ways and Means Committee said in an interview with CNBC in January, “There will be a significant impact in a bad way on our economy.”
Sen. Chuck Grassley (R-Iowa) said it would be a “big mistake” to “raise taxes on individuals and businesses while struggling through economic recovery and a pandemic.”
Secretary of Treasury Janet Yellen said in a Senate testimony in January that the tax system “cannot be tilted toward the interests of corporations and the wealthy, while those supported by the majority of wages carry an unequal burden.”
He added, “Biden will require corporations and the richest Americans to pay a fair share.”