President Joe Biden has made no secret of his big-spending predilections — or the necessity of tax hikes to fund his ambitious agenda.
Recent reports indicate that his administration is taking a serious look at how to pursue that plan.
Likely focus of Biden tax plan
According to Bloomberg, Biden is currently plotting the first major federal tax increases in roughly 30 years in hopes of financing a huge economic program.
After signing a nearly $2 trillion COVID-19 relief bill into law over the objections of every Republican on Capitol Hill, the president is reportedly barreling toward even more costly partisan agenda items.
The COVID-19 package, which the GOP criticized as unfocused and wasteful, was one of the most expensive bills to ever become law. Biden now appears poised to raise taxes on Americans to pay for an even pricier economic program he has planned next, according to Bloomberg.
Of course, the White House is insisting that only the wealthiest Americans will be paying higher taxes, assuring middle-class taxpayers that they will not be hit with the increased liability.
The president is reportedly planning to raise the corporate tax rate from 21% to 28%, raise capital gains taxes on individuals earning more than $1 million per year, and raise the income tax rate on those who make more than $400,000 annually.
“Tax policy needs to be fair”
Also in Biden’s plan is an expansion of the estate tax. Furthermore, the administration will likely attempt to eliminate former President Donald Trump’s 2017 tax cuts, which critics have denounced as a giveaway to the rich.
According to the Tax Policy Center, the Biden campaign’s tax plan would raise more than $2 trillion over the course of a decade, though the exact scope of the president’s plan has not yet been made clear.
Former Biden economic aide Sarah Bianchi explained: “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. That is why the focus is on addressing the unequal treatment between work and wealth.”
If he is successful in hiking the federal tax rate next year, it will be the first serious tax increase since former President Bill Clinton’s in 1993.
Unless he backs a strictly partisan course as with the recent COVID-19 relief bill, however, Biden will need to convince at least 10 Senate Republicans to vote in favor of his plan.