Report: President Biden Plans First Tax Hike Since 1993

Politics

WASHINGTON, DC – MARCH 08: U.S. President Joe Biden speaks in the East Room. (Photo by Alex Wong/Getty Images)

(WTRF)- According to Bloomberg, President Biden is planning to execute the first major tax hike in federal taxes in almost 30 years.

The increase would be to help pay for the $1.9 trillion pandemic stimulus package.

The planned increases reportedly include: raising the corporate tax from 21 percent to 28 percent; increasing the income tax rate on people making over $400,000; expanding the estate tax; paring back tax preferences on pass-through businesses such as limited-liability companies; and setting up a higher capital-gains tax rate for individuals making at least $1 million.

The tax hike will likely include repealing former President Trump’s 2017 tax law that benefitted corporations and wealthy individuals, Bloomberg says, citing sources.

West Virginia Senator, Joe Manchin, told The Hill, that repealing Trump’s tax cuts would be “ridiculous.”

“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,” former Biden economic aide Sarah Bianchi told Bloomberg. “That is why the focus is on addressing the unequal treatment between work and wealth.”

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