The Biden administration is allegedly contemplating a series of tax hikes on high income earners and corporations that could potentially yield more than $2 trillion in revenue over the next decade.
Bloomberg News first reported Monday morning that President Joe Biden will likely outline the plan during his joint session address to Congress, expected to take place before the end of the month. The not-yet-finalized proposal would mark the first significant tax increases since former President Bill Clinton’s 1993 tax bill. (RELATED: Biden Pledges To Hike Taxes To Bush Administration Levels)
Four people familiar with the discussions told Bloomberg that the president’s proposal, while outright rejecting Sen. Elizabeth Warren’s wealth tax, would raise both the income tax rate for filers making more than $400,000 per year and the corporate gains tax for filers earning more than $1 million per year. Furthermore, Biden is expected to pursue a 7 percent increase in the corporate tax rate and limit ways for sole proprietorships and other “pass-through” businesses to avoid paying corporate taxes.
Bloomberg’s report alleges that the proposal will be included in the Biden administration’s forthcoming economic recovery plan and will be framed as necessary to offset increased spending, including the government’s coronavirus pandemic response and the president’s own climate proposals.
The Washington Post also reported Monday that Treasury Secretary Janet Yellen is working with her foreign counterparts to institute a uniform, minimum tax for multinational corporations.
Biden frequently addressed potentially raising taxes during the 2020 campaign and transition process. He said during a December interview that “there’s no reason why” the government shouldn’t raise taxes on high-income earners and corporations.
“It’s about time they start paying a fair share of the economic responsibility we have,” the president stated at the time. “The very wealthy should pay a fair share – corporations should pay a fair share.”
The White House did not respond to the Daily Caller’s inquiries on the subject by press time.
This is a developing story and will be updated with new information as it becomes available.