President Joe Biden is reportedly planning the first major federal tax increase in almost three decades to help bankroll the long-term economic program set up to follow his $1.9 trillion COVID-19 stimulus package he signed last week, unidentified people familiar with the matter told Bloomberg in a Monday report.
The reported plans would be the first major tax increase since President Bill Clinton‘s 1993 overhaul.
The tax hike proposals reportedly either under consideration or currently planned include: raising the corporate tax rate to 28% from 21%; raising the income tax rate on individuals making over $400,000; paring back tax preferences for pass-through businesses, such as limited-liability companies or partnerships; expanding the estate tax; and establishing a higher capital gains tax rate for people making at least $1 million annually.
On the campaign trail, Biden had said he would repeal former President Donald Trump‘s tax cuts on “day one” of his administration, though he has yet to follow through a little over 50 days after taking office. Since becoming president, much of his and Democrats’ attention have been on Trump’s second impeachment trial, COVID economic relief, Cabinet confirmations, among many other things.
Since Trump’s massive tax cuts were passed in 2017, something Republicans overwhelmingly consider a major achievement for the former president, the cuts have been the target of many Democrats’ ire, becoming a boogeyman of sorts for them. “[T]he worst bill in the history” of Congress, then-House Minority Leader Nancy Pelosi (D-Calif.) labeled the tax legislation in late 2017.
Seeing how Biden’s $1.9 trillion American Rescue Plan faced massive hurdles posed by moderate senators in his own party, in a chamber the Democrats control by the slimmest of margins, there are signs that a tax hike would face a rocky road to passage.
MORE ON COVID RELIEF: House approves $1.9T COVID relief bill, Biden set to sign Friday
West Virginia Sen. Joe Manchin (D), a moderate, told The Hill in January that repealing Trump’s 2017 tax cuts would be “ridiculous”. Though, as the publication noted, Manchin walked back his comments, saying, “Everything’s open for discussion.”
MORE ON SEN. MANCHIN: Sen. Sinema breaks with Democrats on $15 minimum wage
Any tax hikes that are passed would likely take effect starting in 2022, according to Bloomberg, which pointed out that some lawmakers have urged the administration to hold off due to pandemic-related unemployment remaining high.
Late last month for example, Montana Sen. Jon Tester (D) warned that lawmakers ought to be careful about raising taxes when the real unemployment rate at the time was estimated to be as high as 10%, per The Hill.
“I think there are some loopholes in the code that could be cut out. I don’t know that you want to do it right now,” he said.
You can follow Douglas Braff on Twitter @Douglas_P_Braff.
You may like
Gallup poll: GOP holds large advantage over Dems in economy, national security
A recent Gallup poll shows Americans overwhelmingly have faith in Republicans over Democrats when it comes to the economy. In fact, the GOP “holists largest advantage on the economy in over 30 years, with 53% of Americans trusting Republicans more than Democrats on the issue” writes the Daily Caller News Foundation.
The poll holds Republicans at a 14-point lead over Democrats for handling the economy better. “The GOP scored 10 points higher on the economy than last year, marking the largest margin between the two parties since 1991.”
Gallup’s publication of the poll is titled ‘Neither Party Well-Liked, but GOP Holds Advantage on Issues.’ It may not be a shock that “The two major political parties remain unpopular in the U.S., with 56% of Americans viewing the Republican Party unfavorably and 58% saying the same of the Democratic Party” but the GOP holds “historically ample leads.”
— Reagan Reese (@reaganreese_) September 26, 2023
“Fifty-three percent of Americans believe the Republican Party will do a better job of keeping the country prosperous over the next few years, whereas 39% choose the Democratic Party.”
“A slightly larger majority, 57%, have greater faith in the Republican Party to protect the country from international terrorism and military threats, while 35% favor the Democrats.”
You may like
education6 days ago
Department of Education Office of Civil Rights opens investigation into Harvard University
Featured5 days ago
Historic House Vote Expels Rep. George Santos Amidst Scandal
Nation6 days ago
GOP Weighs Formalizing Impeachment Inquiry into President Joe Biden
Middle East5 days ago
U.S. House Votes to Permanently Freeze $6 Billion Iranian Funds Amid Hostage Exchange Controversy