Biden planning to move on first significant tax increase in nearly 30 years

Sources close to President Joe Biden told Bloomberg over the weekend that he is looking at a major tax increase as his next legislative priority on the heels of passing a $1.9 trillion COVID relief package last week using budget reconciliation to avoid the Senate filibuster.

Biden seeks to keep campaign promises he made about raising taxes on the rich, which he defines as making more than $400,000, while giving bigger breaks to those on the low end of the income spectrum. He has promised to repeal part of former President Donald Trump’s 2017 tax cuts in order to tax the wealthy more.

He also wants to fund at least part of his recent COVID bill, which was passed even though there was no money in the budget for any of the provisions it contained.

The reported increases include raising the corporate tax from 21 percent to 28 percent; increasing the income tax rate on people making more than $400,000; expanding the estate tax; paring back tax preferences on pass-through businesses like LLCs and partnerships; and a higher capital gains tax rate for individuals making at least $1 million.

Tax plan looks to raise $2.1 trillion over 10 years

Bloomberg reported that an independent analysis of the Biden tax plan by the Tax Policy Center determined that it would raise about $2.1 trillion over 10 years.

Those numbers are based on predictions that could be flawed because they don’t take into account ways the wealthy will attempt to shield their assets from taxes.

Additionally, the Manhattan Institute pointed out in 2019 that raising taxes will not raise enough money to cover the deficit that would be created by the left’s policy plans.

Even if 100% of the wealth of Americans over $1 million was confiscated in taxes, it would not raise enough money to cover the approximately $40 trillion in spending plans by Biden and the left. And then, there would be no more capital to create more wealth so that more taxes could be collected.

Will a tax bill get through the Senate?

Eventually, Democrats are always going to run out of other people’s money, but Biden doesn’t care about that because he will be long gone by the time that happens.

Biden probably does have the power to ram a tax increase through the Senate using the same budget reconciliation process that enabled the COVID relief package to get through.

A few conservative Democrats like Sen. Joe Manchin (D-WV) may not be willing to go along with large tax increases, however, and the party can’t afford to lose a single vote because of the 50-50 Senate.

Manchin reportedly said rolling back the Trump tax cuts would be “ridiculous,” but later said that everything would be “open for discussion.”

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7 Responses

  1. But Joe said during his basement campaign that he would not raise taxes, he would not come after our guns , that he was a man of unity, that he would have this pesky pandemic resolved within 100 days. Did you lie Joe?
    F’ing right he did.

  2. Bend over USA this is just the tip of the ice burg headed our way from the Buffoon and Princess Spread Eagle.
    In less that four year this Nation will be begging Trump to return. If there is a free Nation left to save. Or there will ever be another free and CONSTITUTIONALLY LEAGEL ELECTION AGAIN. THE DEMOCRATS HAVE PROVEN THAT ELECTIONS “CAN,” BE FIXED.

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  4. Agree with all posts. The demonrat way is tax the little guy and overspend on THEIR pet projects! You can bet THEIR money is shielded from taxes! Impeach th flaming lunatic, the ho and skank Piglosi!

  5. Biden has a crisis at the border letting in the pandemic china virus with super spreader illegal immigrants.

  6. Why is it that the democrats must have higher taxes – to give it away to countries that aren’t relevant to the US, pay the way for illegal immigrants, line their pockets – can’t they even run a country ??? They yell about banning police forces – why don’t they get rid of their ‘armed’ guards ??? Fabrication and bull is all they’re good for – as they have proved in the short period of time they have been in office !!! What is one thing they have done for America ??? Malcontent and disarray is all they’re good for !!!

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