Politics

Report: Biden Is Planning the First Major Tax Increase in 30 Years

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Biden is looking at higher personal and corporate tax rates in a package that Bloomberg billed Monday as the “First Major Tax Hike Since 1993.”

Bloomberg said that according to its sources, which it did not name, among the proposals being considered are increasing the corporate tax rate from 21 percent to 28 percent, increasing income tax rates for individuals earning more than $400,000 and expanding the estate tax.

The Biden camp labeled its efforts an exercise in fairness, according to the report.

“His whole outlook has always been that Americans believe tax policy needs to be fair, and he has viewed all of his policy options through that lens,” Sarah Bianchi, head of U.S. public policy at Evercore ISI and a former economic aide to Biden, told Bloomberg. “That is why the focus is on addressing the unequal treatment between work and wealth.”

Biden had campaigned on raising taxes. The Tax Policy Center has estimated that if the president were to enact everything he proposed, it would bring in $2.1 trillion over a decade. Bianchi said she thinks the final amount will be closer to $500 billion, a level where she said congressional Democrats are comfortable.

Republicans were unable to block the massive COVID-related bill because of the tactics Democrats used to get it through the Senate. This time, Republicans may be able to fight back and have signaled that intention.

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