President Joe Biden is reportedly preparing to follow up with his controversial COVID-19 stimulus bill with his plan for the “first major federal tax hike” in nearly three decades.
“Unlike the $1.9 trillion Covid-19 stimulus act, the next initiative, which is expected to be even bigger, won’t rely just on government debt as a funding source,” Bloomberg News reported. “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.”
“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,” Sarah Bianchi, head of U.S. public policy at Evercore ISI and a former economic aide to Biden, told Bloomberg News. “That is why the focus is on addressing the unequal treatment between work and wealth.”
The Tax Foundation reports that “the top 1 percent paid a greater share of individual income taxes (40.1 percent) than the bottom 90 percent combined (28.6 percent).” – READ MORE
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