Joe Biden Preparing to Propose Biggest Tax Hike in Nearly Three Decades As Country Fights Through a Pandemic

As Americans continue suffering the effects of a global pandemic, President Joe Biden is planning to implement the largest federal tax hike since 1993.

According to a new report from Bloomberg, measures in Biden’s economic package will include “an increase in both the corporate tax rate and the individual rate for high earners” and will repeal portions of Republican legislation that cut taxes in 2017.

Other measures will include:

• Raising the corporate tax rate to 28% from 21%
• Raising the income tax rate on individuals earning more than $400,000
• Expanding the estate tax

An analysis from the Tax Foundation released earlier this year found that efforts to reverse the Republican tax cuts passed in 2017 and raise the corporate tax rate from 21 percent to 28 percent would “reduce long-run economic output by 0.8 percent, eliminate 159,000 jobs, and reduce wages by 0.7 percent.”

The analysis also concluded that most of those effects would be felt within 10 years of implementation, and businesses which had to lay off employees during the pandemic would be most severely impacted.

However, President Biden’s plan to increase taxes could be facing an uphill battle as lawmakers in his own party express their concerns, according to a report from The Hill.

Democratic Senator Joe Manchin previously said he thought repealing the 2017 tax cuts would be “ridiculous” before later walking back his comments and reiterating “everything’s open for discussion.”

An anonymous Democratic House member also voiced their opposition to a large federal tax increase.

“‘People would accept the corporate tax raised a few points but beyond that you’re going to have problems, especially in the middle of an economic crisis,’ the lawmaker said at the time.” – The Hill

Republicans are prepared to fight the plan as well, noting the devastating economic impact it could have as Americans begin recovering from the pandemic.

“Kevin Brady, the top Republican on the House Ways & Means Committee, said, ‘There seems to a be a real drive to tax investment of capital gains at marginal income rates,’ and called that a ‘terrible economic mistake.’” – Bloomberg

Senate Republican Leader Mitch McConnell also said there will be “a big robust discussion about the appropriateness of a big tax increase.”

Bottom line: President Biden’s economic policies have been a disaster for hardworking Americans. His attempt to implement a historic tax hike just as the country begins to recover from the pandemic exemplifies how misguided and dangerous the Biden administration’s radical agenda is.