New economic proposals from President Joe Biden could result in the biggest tax increases the United States has seen in almost thirty years.
On Monday, March 15, Bloomberg published a report, in which unidentified sources said that Biden is planning the biggest federal tax increase since 1993. According to the report, some of the proposals include increasing the corporate tax from from 21 percent to 28 percent and increasing the income tax rate for individuals who earn more than $400,000.
Other proposals reportedly include expanding the estate tax and creating a higher capital-gains tax rate for individuals earning $1 million or more per year.
In the Bloomberg report, the Tax Policy Center determined that Biden’s campaign tax plan would raise approximately $2.1 trillion over 10 years if implemented. Bloomberg’s sources stated that, if passed, the tax increases would likely take effect in 2022.
The tax program has not been revealed, and a date has not been set to announce it.
This tax program will likely be pushed as a way to fund the recently signed $1.9 trillion COVID-19 relief bill. Biden signed the bill on Thursday, March 11. This relief bill provides $1,400 stimulus checks for individuals, as well as a $300 increase for federal weekly unemployment benefits and an expansion of the child tax credit.
According to the Bipartisan Policy Center, the federal deficit for 2021 is $1.047 trillion.
Image courtesy of the White House via Wikimedia Commons