There was no such tax reform in the United States thirty years ago.
Joe Biden Bloomberg News quoted the source as saying that the US president is preparing for the first large federal tax increase in the United States since 1993, which will be necessary to finance a long-term economic program after the $ 1.9 trillion bailout package adopted last week.
According to sources familiar with the draft, who requested that their names be withheld, the Biden government will likely cancel the tax increases. Donald Trump Those parts of the former president’s tax law of 2017 that benefit companies and high-income people. Additionally, other changes must be made to make the tax law more progressive.
According to the article, the proposals include increasing corporate tax from 21 to 28 percent, reducing tax exemptions for some companies, and raising the income tax rate for individuals who earn more than $ 400,000 annually. The tax increase will provide an opportunity not only to fund key initiatives of the Biden Cabinet, such as developing infrastructure, fighting climate change, or helping poorer Americans, but also to change inequality in the tax system.
As they write, Biden’s cabinet is expected to finance measures greater than the current bailout package not just from credit, that is, by increasing public debt. According to Bloomberg sources, presidential advisers are working on a solution that could include increasing the corporate tax and the individual tax rate for high-income earners. According to the article, the tax increase plan will be a serious test of the president’s ability to persuade Republicans, as will the extent of the Democratic Union.
The article said an independent analysis of Biden’s planned tax hike estimated that these measures could bring the country $ 2.1 trillion in revenue over a decade, but Democrats would already be happy with a $ 500 billion package.
The comprehensive tax increase program has not been officially announced. If the new tax measures are adopted, they will likely come into effect in 2022, although some lawmakers and Biden’s non-management supporters have argued that they should not be introduced as long as unemployment caused by the coronavirus epidemic is high, the article says.
