As announced by liberal policy critics, the Biden administration’s excessive government spending, due to a profligate waste of taxpayer dollars, is leading the Biden administration to plan a historic increase in federal taxes that will impact the entire population.
President Joe Biden is planning the first major federal tax increase since 1993, beset by rising government spending and thinking about the long-term economic program designed as a follow-up to his controversial $1.9 trillion pandemic relief bill, people familiar with the matter said.
Unlike the stimulus bill to combat the effects of the recently passed CCP Virus pandemic, the upcoming initiative, which is expected to be even larger, will not rely solely on public debt as a source of funding and for this reason they plan to increase tax revenues by imposing a higher tax burden on taxpayers.
According to reported sources, the Biden administration is preparing a package of measures that could include both a large increase in the corporate tax rate and in the individual tax rate for high-income individuals.
Of course, it will not be easy to impose such an increase, because they will undoubtedly meet resistance from Republicans and conservatives who will stand up to the federal government’s outrage.
Getting higher tax rates passed
Modifying the rates is fraught with political risks and different sectors of the economy and politics will defend the interests of those affected by the taxes they intend to impose.
The Democrats have long been using the discourse that there is an inequitable tax system to push for a generalized tax increase, with the objective of expanding governmental power and thus being able to impose the globalist agenda of the left more easily from the government.
The plan will undoubtedly test Biden’s ability to convince Republicans and the ability of Democrats to stand united.
Tax increases included in any broader infrastructure and jobs package are likely to include repealing parts of President Donald Trump’s 2017 tax law that sought to cut taxes to give oxygen to businesses and wealthy individuals, which worked as an incentive to attract new investment that translated into millions of new jobs.
An independent analysis of Biden’s campaign tax plan by the Tax Policy Center estimated it would raise $2.1 trillion over a decade.
Kevin Brady, the top Republican on the House Ways and Means Committee, said, “There seems to be a real drive to tax investment of capital gains at marginal income rates,” and called that a “terrible economic mistake,” as reported by NewsMax.
President Biden’s critics were already announcing in July 2020 that this would happen if Biden took over the White House. And it was highlighted even back then that it would represent a high risk for investors in the stock markets, given the impact they could experience should he win the election.
Political commentator Stuart Varney of FOX Business analyzed the situation on July 20, 2020, and stated that the danger for investors lies in the controversial promise made by Biden—drastic tax increases for companies and individuals would be inevitable.