Biden planning first major tax hike since 1993 – ‘Measures to combat climate change’ could get huge chunk of money
President Biden is reportedly planning to include the first major tax hike in close to 30 years in the next economic spending bill set to follow his $1.9 trillion coronavirus relief package.
The next spending initiative — which is expected to be even bigger, costing as much as $4 trillion — won’t rely on just government debt as a funding source and could include an increase in both the corporate tax rate and the individual rate for high-income earners, according to Bloomberg News, citing a person familiar with the matter.
The planned changes include: raising the corporate tax rate to 28% from 21%, raising the income tax rate on individuals earning more than $400,000, expanding the estate tax, creating a higher capital-gains tax rate for individuals earning at least $1 million annually and paring back tax preferences for so-called pass-through businesses.
It’s unclear what other measures would be included in the proposal, but on the campaign trail, Biden emphasized the need for new infrastructure investments and measures to combat climate change, as well as ways to revitalize the manufacturing industry and revamp housing, education and health care.
Raising taxes will serve as a key test for the nascent administration as it navigates a 50-50 Senate in which moderate Democratic lawmakers like Joe Manchin of West Virginia and Krysten Sinema of Arizona play an outsized role.