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Biden plans first major tax increase since 1993

Biden plans first major tax increase since 1993

U.S. President Joe Biden is expected to propose a series of tax hikes as part of the first major federal tax increase in nearly 30 years to pay for the long-term economic program that will follow the anti-COVID-19 bill.

Sources told Bloomberg that provisions currently under consideration include raising the corporate tax rate from 21 percent to 28 percent; cutting tax breaks for so-called pass-through businesses such as limited liability companies or partnerships; raising the income tax rate for individuals earning more than $400,000; expanding the inheritance tax; and a higher capital gains tax rate for individuals earning at least $1 million a year.

An analysis of the Biden campaign’s tax plan by the Tax Policy Center found that it would bring in $2.1 trillion over 10 years.

The next economic plan is expected to be larger than the $1.9 trillion COVID-19 bailout bill that Biden signed last week after it passed Congress with zero Republican support.

Treasury Secretary Janet Yellen warned that unlike the first bill, which relied on the national debt for funding, at least some future reserves would need to be offset.

The White House has not yet unveiled a new program that would follow the signing of the COVID-19 bill. The report says it could cost between $2 trillion and $4 trillion.

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