Biden Plans First Major Federal Tax Hike Since 1993

According to a new report from Newsmax “President Joe Biden is planning the first major federal tax hike since 1993 to help pay for the long-term economic program designed as a follow-up to his pandemic-relief bill, according to people familiar with the matter.”

The report adds that “while it’s been increasingly clear that tax hikes will be a component — Treasury Secretary Janet Yellen has said at least part of the next bill will have to be paid for, and pointed to higher rates — key advisers are now making preparations for a package of measures that could include an increase in both the corporate tax rate and the individual rate for high earners.”

Sarah Bianchi, head of U.S. public policy at Evercore ISI and a former economic aide to Biden said “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.”

“That is why the focus is on addressing the unequal treatment between work and wealth,” she added.

Here are some of the proposals, according tot he report:

  • 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)