The first major tax hike in 30 years may soon be on its way under Joe Biden.
Bloomberg reports that, "Unlike the $1.9 trillion Covid-19 stimulus act, the next initiative, which is expected to be even bigger, won’t rely just on government debt as a funding source."
Major tax hikes are expected to be a component of the measure which is also being seen as an opportunity to fund Biden initiatives - reportedly including trillions earmarked to address climate change.
Biden's team is kicking around ideas to raise taxes, including the corporate tax rate and the personal rate for high earners (more than 400k), @nancook and @laurapdavison write:https://t.co/ZexeTvK0nz— Josh Wingrove (@josh_wingrove) March 15, 2021
According to Bloomberg:
The following are among proposals currently planned or under consideration, according to the people, who asked not to be named as the discussions are private:
- Raising the corporate tax rate to 28% from 21%
- Paring back tax preferences for so-called pass-through businesses, such as limited-liability companies or partnerships
- Raising the income tax rate on individuals earning more than $400,000
- Expanding the estate tax’s reach
- A higher capital-gains tax rate for individuals earning at least $1 million annually. (Biden on the campaign trail proposed applying income-tax rates, which would be higher)
Democrats would need at least 10 Republicans to back such a bill to move it forward in the Senate, whether any will come out in support of a tax increase remains to be seen.