President Joe Biden is reportedly considering a major tax hike for the government to underwrite an economic program approved with his $1.9 billion relief plan, as per Bloomberg. If approved, the tax hike will become the first major increase in almost 30 years.
According to Bloomberg’s unidentified sources, the tax hike would back the president’s campaign promises.
As per the Tax Policy Center, their independent analysis of the president’s possible tax plan would raise $2.1 trillion in more than 10 years.
Tax jumps included in infrastructure or job packages would likely entail repealing some parts of former President Donald Trump’s 2017 tax law. It gave benefits to corporations and wealthy people.
Biden Expressed Plan of Tax Hike During 2020 Campaign
According to Breitbart News, Biden expressed his desire twice during the presidential debates to increase taxes for everyone. This includes the middle class.
During the said debates Biden said he plans on removing the tax cuts put in place by Trump.
Sarah Bianchi, a former Biden aide, said the president believed Americans think tax policies should be fair. She said he has been looking at policy options through this lens. Bianchi adds that this is why he focuses on addressing the inequality between work and wealth.
If new tax policies to increase rates would be passed, they would likely become effective in 2022. Bloomberg also noted that a few legislators are urging the Biden administration to postpone tax hike plans as unemployment caused by the pandemic is still high.
If the Democrats plan to pass such legislation, they would need at least 10 GOP lawmakers to support the bill, as per regular Senate rules. However, Republican lawmakers are prepared to fight against it. This comes after they received a warning during Biden’s 2020 campaign of a possible tax hike.