In order to help pay for his ambitious upcoming economic initiatives, President Joe Biden is eyeing the first major tax hike since 1993 according to sources around his administration.
The $1.9 trillion “American Rescue Plan” that just passed on a strict party-line vote of Democrats relied almost entirely on debt to finance. But according to his Secretary of the Treasury Janet Yellen, Biden’s next economic plan will have to be at least partially paid for – something the administration plans on doing by including a corporate tax rate hike as well as an increase on individual tax rates for high earners.
Rather than providing immediate relief from the coronavirus pandemic, Biden’s upcoming economic plans will be designed to provide long-term structural changes. The president hopes to fund infrastructure developments, as well as climate initiatives.
Beyond that, Democrats like Biden have long argued that American tax policy is fundamentally maladjusted to benefit the rich. Achieving their version of “equity” is likely to be a key component of future economic and tax bills, which will provide an unquestionable test of the president’s capacity to appeal to Republicans.