After signing the heavily partisan $1.9 trillion stimulus package, President Biden is considering a major tax hike to underwrite the economic program, according to Bloomberg. The tax hike would be the first major lift in federal taxes in almost 30 years if sucessful.
An independent analysis of the Biden campaign’s tax plan conducted by the Tax Policy Center found that it would raise around $2.1 trillion over 10 years.
During the campaign trail, Biden has promised that he would raise taxes on everyone, including the middle class after he repeals the Trump tax cuts that have benefited the middle class.
“That’s why I’m going to eliminate the Trump tax cuts,” Biden said during his first of three debate with President Trump. And then, to accentuate the point, he said it again, “I’m going to eliminate those tax cuts.”
Ex-Biden economic aide Sarah Bianchi told Bloomberg “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,” she went on, “That is why the focus is on addressing the unequal treatment between work and wealth.”
Democrats would need at least 10 Republicans to back the bill to move it under regular Senate rules. But GOP members are ready to fight having been warned during the 2020 campaign that if Joe Biden won the White House, taxation is coming, but some are questioning if the establishment Republicans will side with Democrats in raising taxes on the middle class.
“We’ll have a big robust discussion about the appropriateness of a big tax increase,” Senate Minority Leader Mitch McConnell said last month, predicting Democrats would pursue a reconciliation bill that forgoes the GOP and would aim for a corporate tax even higher than 28%.