US President Joe Biden is planning the largest tax hike since 1993, Bloomberg reports, citing sources. Such a measure is necessary to finance a long-term economic program, which should follow the third package of state support for $ 1.9 trillion, the interlocutors said.
We are talking about what was assumed in the presidential program of Biden in the elections in 2020, say four interlocutors of Bloomberg. According to them, the head of state will partially repeal the 2017 law of the previous President Donald Trump, which gave preferences to corporations and wealthy citizens. With this and other amendments, he seeks to make the tax code more progressive, the sources explained.
Among the measures discussed, the interlocutors named an increase in the tax for corporations from 21 to 28%, the abolition of tax incentives for limited liability companies (LLC), as well as an increase in income tax for citizens who earn more than $ 400 thousand. In addition, a higher tax rate for capital gains for those earning at least $ 1 million per year.
In November 2020, the Tax Policy Center estimated that the measures proposed by Biden during the election campaign would have brought the budget $ 2.1 trillion over ten years. The current plan of the presidential administration is more modest, Bloomberg points out. The total volume of the economic program, according to experts, will range from $ 2 trillion to $ 4 trillion.
Democrats need the support of at least ten Republicans to get Senate approval to raise taxes, the agency said. The bill will test Biden's ability to maintain agreement between the two parties, Bloomberg said.
In early March, Biden approved a $ 1.9 trillion package of measures aimed at supporting the country's economy, which has suffered from the pandemic. The document provides for direct payments of $ 1.4 thousand to Americans in need of support. The law also extends the deadline for paying the $ 300 weekly Unemployment Benefit Supplement until September 6. A total of $ 350 billion has been pledged to help states, counties and local governments. The money will also go to help schools and businesses, expand tax breaks for children, as well as fight the coronavirus and a vaccination campaign.
