Red Alert: Biden Planning First Major Tax Increase In 30 Years, Here’s The Details (Report)

OPINION | This article contains commentary that reflects the author's opinion.

Joe Biden is pushing to use the $1.9 trillion federal stimulus bill as a precursor to even more spending, according to The Western Journal.

Biden is looking into higher personal and corporate tax rates and will be the “First Major Tax Hike Since 1993.”

Corporate tax rates would increase from 21 percent to 28 percent.

“His whole outlook has always been that Americans believe tax policy needs to be fair, and he has viewed all of his policy options through that lens,” Sarah Bianchi said. “That is why the focus is on addressing the unequal treatment between work and wealth.”

Biden campaigned on raising taxes.

The Tax Policy Center estimates that if Biden brought on all of his proposals it would bring in $2.1 trillion over a decade.

Bianchi thinks the final amount will be closer to $500 billion.

Republicans were unsuccessful at blocking the COVID bill.

“We’ll have a big robust discussion about the appropriateness of a big tax increase,” Senate Minority Leader Mitch McConnell said.

Republican Rep. Kevin Brady said, “There seems to a be a real drive to tax investment of capital gains at marginal income rates,” and he called that a “terrible economic mistake.”

“I don’t think it is an understatement to say the current partisan environment is more severe than 1993” Ken Kies said.

“So you can draw your own conclusions” about a tax deal in 2021.

“For example, corporations do not pay tax. Only people can pay a tax,” Morris said. “Corporations may write the [tax] check but people pay them: Customers pay them through higher prices, employees pay them through lower wages and investors pay them through lower returns. This is a political, emotional item.”

“Remember that 2022 is an election year. Who wants to have opponents say, ‘You raised taxes!?’” Armstrong said. “I think that if any changes occur of any significance, it’ll be [in] the window of 2023.”

From The Western Journal:

The plan will be pushed as making wealthy individuals and corporations pay their fair share, Americans should understand that any tax increase will have a broad impact, said Daniel Morris, a CPA in San Jose, California.

Although the White House is planning to target a tax increase to take effect next year, the political dimension of any increase could put off the debate for a couple of years, according to Morris Armstrong, an accountant and investment adviser in Cheshire, Connecticut.