(WTRF/NEXSTAR) — President Joe Biden is planning to execute the first major tax hike in federal taxes in almost 30 years, Bloomberg reported Monday.
The increase would be used to help pay for the longterm economic program that will be a follow-up to Biden’s $1.9 trillion pandemic stimulus package — called the American Rescue Plan — which he signed into law Thursday.
The planned increases reportedly include raising the corporate tax from 21% to 28%, increasing the income tax rate on people making over $400,000, expanding the estate tax, paring back tax preferences on pass-through businesses such as limited-liability companies, and setting up a higher capital-gains tax rate for individuals making at least $1 million.
The tax hike, the first such measure since Bill Clinton’s overhaul in 1993, will likely include repealing former President Donald Trump’s 2017 tax law, which benefitted corporations and wealthy individuals, Bloomberg reported, citing sources.
West Virginia Sen. Joe Manchin told The Hill in January that repealing Trump’s tax cuts while the pandemic continues to weigh on the economy would be “ridiculous,” though his stance has eased a bit since then. He said last month that “everything’s open for discussion.”
Source: Major tax hike coming: report
