Politics

Report: Biden Abandons $1 Trillion Tax Hike Goal, Now Has Eyes On A Higher Number

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Originally, according to The Post, Biden’s White House National Economic Council was looking at a $3 trillion plan with $1 trillion tax hikes. Unlike the stimulus, this wouldn’t be funded entirely by debt.

That still wasn’t enough for the left and its larger goals, however — which is why The Post reported Monday that the infrastructure plan is now more likely to look like $4 trillion in spending with $3 trillion in tax hikes.

Biden wants to go big, as we’ve seen. We’ll see how big he wants to go on Wednesday, when the plan is unveiled. The problem with bigness, however, is that some members of the economic team are worried widening the deficit would cause interest rates to go up, with federal debt payments spiking.

Whatever the case, it would be the first major tax hike since Bill Clinton’s 1993 plan. Bloomberg sketched out an outline in a March 15 report — although this dealt with a tax hike package that was much smaller in scope than what The Washington Post is reporting now.

Biden’s plan, according to Bloomberg, would raise the corporate tax rate from 21 percent to 28 percent, raise the income tax on those who earn over $400,000, expand the reach of the estate tax, raise capital gains taxes and reduce tax preferences for limited liability companies and partnerships — so-called “pass-through” businesses, which are taxed at individual rates instead of corporate rates.

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