Joe Biden is planning to propose the first major federal tax hike since 1993 to fund a plan to tackle climate change, infrastructure and other Socialist pet projects.
The economic package will reportedly cost between $2-$4 trillion dollars – this is on top of the $1.9 trillion Covid relief bill Biden just signed into law.
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The increases are expected on corporate tax and individual rate for “high-income” earners, Bloomberg News reported.
The tax hikes included in any broader infrastructure and jobs package are likely to include repealing portions of President Donald Trump’s 2017 tax law that benefit corporations and wealthy individuals, as well as making other changes to make the tax code more progressive, said the people familiar with the plan.
The following are among proposals currently planned or under consideration, according to the people, who asked not to be named as the discussions are private:
- 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)
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Americans are still suffering from unconstitutional Covid lockdowns, small businesses are shuttering and Biden’s first order is to raise taxes.
With narrow majorities in both chambers, the Democrats will have to create the economic package that will appease the far-left progressive wing as well as the more ‘moderate’ lawmakers.
The Republicans are expected to fight back on the plan, however as we have seen with the Covid relief bill, the Democrats will find a way to pass the bill with zero GOP support.
