- President Joe Biden is reportedly planning a tax hike in his next spending package.
- Bloomberg reported that Biden is considering increasing the corporate tax rate from 21% to 28%.
- Biden is also considering increasing income taxes for those earning over $ 400,000 a year.
- You can find more articles on Insider’s business page.
President Joe Biden is preparing to include a federal tax hike in his next major economic package, according to a Bloomberg report on Monday.
People familiar with the matter told the point of sale that the Biden government was working on a follow-up bill for the recently passed $ 1.9 trillion coronavirus stimulus. The initiative is expected to come at a higher price, and potentially raise the corporate and income tax rate for high earners to offset expenses, Bloomberg reported.
The move would be the first major federal tax hike in nearly 30 years, according to Bloomberg. The last major tax hikes were made in 1993 under the Clinton administration.
Sources knowledgeable of the private discussions told Bloomberg that current ideas are to increase the corporate tax rate from 21% to 28%, increase the income tax rate for those earning more than $ 400,000 a year, and the capital income tax rate for individuals increase those earning at least $ 1 million a year; increase estate tax; and increase tax preferences for pass-through businesses that are not subject to corporate income tax, such as B. Limited Liability Companies, “drive back”.
White House press secretary Jen Psaki told reporters on Monday that “there is still no package,” but Biden’s next proposal aims to meet components of his “Better Downsize” agenda touted en route to the 2020 presidential campaign becomes.
“The president remains committed to his campaign promise that no one earning less than $ 400,000 a year will raise taxes,” said Psaki. “His priority and focus has always been on people who pay their fair share and also on companies who may also not pay their fair share.”
The Tax Policy Center, a non-partisan think tank, reported that Biden’s campaign tax plan would generate around $ 2.1 trillion in a decade, Bloomberg noted, but added that the administration’s plan is unlikely to be that extensive .
Republicans are widely expected to roll back tax hike initiatives, according to Bloomberg. The party under the Trump administration passed sweeping tax cuts in 2017 – the largest revision of federal tax law in three decades – without a democratic vote. The law lowered the corporate tax rate from 35% to 21%. Democrats attacked the bill as a “raid” that would “exacerbate” inequality in the country. Biden’s proposal would likely repeal elements of the 2017 Tax Cut and Employment Act, Bloomberg reported.