First major tax increase since Clinton in 1993.
President Joe Biden is planning a tax hike to help pay for the long-term economic program designed as a follow-up to his pandemic relief bill. It would be the first time since 1993 during the administration of President Bill Clinton that such a tax increase would be set in place. Unlike the just-passed $1.9 trillion COVID-19 stimulus act, the next initiative, which is expected to be even bigger, will not rely just on government debt for its funding.
Treasury Secretary Janet Yellen said that the next bill, at least in part, would have to be paid for and pointed to higher taxes. Key advisers are making preparations for a package of measures that could include increases in both the corporate tax rate and the individual rate for high earners. The next big package is expected to deal with infrastructure and jobs.
The tax increases that would be included are likely to also repeal portions of President Trump’s 2017 tax law that benefits corporations and wealthy individuals, as well as making other changes to make the tax code more progressive. Capital gains and estate taxes are also expected to go up.
As the Lord Leads, Pray with Us…
- For the White House advisers who are working on the new infrastructure package that would be paid for in part by tax increases.
- For government officials who will work on the tax reform legislation.
Sources: The Hill, Newsmax, Bloomberg News
