Biden Considering First Major Federal Tax Increase Since 1993

President Joe Biden is considering a federal tax increase to help pay for the long-term economic program designed as a follow-up to the recent pandemic relief bill, Bloomberg reported Monday. The next initiative, unlike the past COVID-19 relief bills, will rely on more than government debt as a funding source. The upcoming measures could include an increase in both the corporate tax rate and the individual rate for high earners. Current ideas being discussed involve raising the corporate tax rate from 21% to 28%, raising the income tax rate for individuals who earn more than $400,000 per year, increasing the capital-gains tax rate for individuals who earn at least $1 million per year and expanding estate taxes. The last significant tax increases were implemented during Clinton administration in 1993. The report was covered by outlets across the political spectrum. Some outlets from the right and center highlighted an analysis by the nonpartisan think tank Tax Policy Center of Biden’s tax plan, which estimated it would raise $2.1 trillion over ten years. Both left and right-rated outlets speculated that this endeavor would receive wide pushback from Republicans.