Bloomberg News quoted the source as saying that US President Joe Biden is preparing for the first large federal tax increase in the United States since 1993, which will be necessary to finance a long-term economic program after the $ 1.9 trillion bailout package adopted last week. say.
US President Joe Biden (Photo: MTI / EPA / Jim Lo Scalzo)
As they write, the Biden government is expected to finance larger measures than the current bailout package not just from credit, that is, by increasing public debt. According to Bloomberg sources, presidential advisers are working on a solution that could include increasing the corporate tax and the individual tax rate for high-income earners.
According to the article, the tax increase will provide opportunities not only to fund initiatives that are essential to Biden’s cabinet, such as developing infrastructure, fighting climate change, or helping poorer Americans, but also changing inequality in the tax system.
As they write,
The tax increase plan will be a serious test of the president’s ability to convince Republicans,
It will also show the extent of the Democrats’ union.
Sources familiar with the bill, requesting that their names be withheld, say the Biden government is likely to cancel those parts of former President Donald Trump’s 2017 tax law that benefit companies and high-income people as part of the tax increases. Additionally, that has been said, other changes must be made to make the tax law more progressive.
Speaking of the details, Bloomberg’s sources mentioned that
The proposals include raising the corporate tax from 21% to 28%,
Reducing tax exemptions for some companies and raising the income tax rate for individuals who earn more than $ 400,000 a year.
An independent analysis of the Biden government’s planned tax increase estimated that the measures could bring the country $ 2.1 trillion in revenue within a decade, but Democrats would already be happy with a $ 500 billion package, according to the article.
The comprehensive tax increase program has not been officially announced. According to the article, if the new tax measures are adopted they will likely go into effect in 2022, although some lawmakers and Biden’s non-management supporters have argued that they should not be introduced as long as unemployment caused by the coronavirus epidemic is high.