Fresh off the $1.9 trillion coronavirus relief package, the White House is eyeing tax hikes to pay for the next round of major spending legislation, which could include infrastructure and climate change proposals.
Treasury Secretary Janet Yellen said that over time, the Biden administration plans to put forth proposals “to get deficits under control.”
“[The president] has proposed that corporations and wealthy individuals should pay more in order to meet the needs of the economy, the spending we need to do,” Ms. Yellen said on ABC’s “This Week” over the weekend.
She said officials can take a look at the “wealth tax” plan from Sen. Elizabeth Warren of Massachusetts, but that President Biden’s campaign proposals to increase taxes on corporations, wealthier individuals and capital gains can achieve similar ends.
Bloomberg reported Monday that items under consideration mirror Mr. Biden’s campaign trail tax plans: increasing the corporate tax rate from 21% to 28%, increasing the individual tax rate on people earning more than $400,000 per year, and hiking the capital gains tax rate for individuals earning at least $1 million annually.
The White House has repeatedly deferred when asked what Mr. Biden’s next major legislative priority will be, saying officials are focused on implementing the $1.9 trillion coronavirus relief package.
Mr. Biden and other officials are planning to travel around the country this week to sell the newly enacted law, which includes direct checks of up to $1,400 for millions of Americans, a $300-per-week federal boost to unemployment benefits into September, and $350 billion for states and localities.
Republicans are unlikely to endorse any major tax-hike proposals that entail reversing at least parts of the 2017 tax-cut law.
But Democrats could use the budget process to muscle through the new spending plan without GOP votes, as they did for the $1.9 trillion package.
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