President Biden is looking at a major tax hike to pay for his economic programs with tax increases that Americans haven’t seen since 1993 under the Clinton administration.
The tax boost will raise the corporate rate from 21 percent to 28 percent, give individuals making more than $400,000 a year a higher income-tax, and increase capital gains taxes for those earning more than $1 million a year.
Assessment by the Tax Policy Center projects that Biden’s tax plan would raise $2.1 trillion over a decade. The COVID spending plan just passed by congressional Democrats costs taxpayers $1.9 trillion and has quickly increased America’s whopping $28 trillion national debt.
Former House Speaker Newt Gingrich told Fox News’s Sean Hannity that the higher taxation is really about funding Democrat interest groups.
“They’ve got to get the money from somewhere, they’re going to borrow as much as they can, and then they’re going to come after every hard-working American, every American business – large and small – and they’re going to use really nice-sounding rhetoric,” he asserted. “But the truth is they want to put their hand in your wallet to take out your money to give to their allies and that’s the number one reality of this machine.”
But the Biden administration believes the increase in money is necessary to fund infrastructure and support an upcoming employment package.
White House economist Heather Boushey pointed out on Monday that Biden doesn’t plan on increasing taxes for Americans earning less than $400,000 annually.
She added that “folks at the top who’ve been able to benefit from this economy and haven’t been this hard hit, there’s a lot of room there to think about what kinds of revenue we can raise.”
Even so, Congressional Republicans are expected to put up a fight over any new taxes.
Grover Norquist, president of Americans for Tax Reform, anticipates that “there will be no Republican votes for the president’s tax increases.”
And Norquist stressed that a tax hike could negatively impact people’s retirement accounts.
“You can’t talk to suburban moms and dads by raising their taxes and raising taxes on the companies they invest in,” he said.
The full plan is still in development and officials have not set a date to implement the plan however the White House is reportedly looking at making an announcement in the near future.