President Biden is mulling a proposal to raise taxes, Bloomberg has reported.
Among the steps being considered:
- For those earning $400,000 or more annually, the personal tax rate would rise to 39.6 percent;
- For those earning $1 million or more annually, capital gains would be taxed as regular income;
- The estate tax would rise to 45 percent on assets worth $1 million or more;
- The corporate tax rate would rise from 21 percent to 28.
The 2017 law cutting U.S. corporate taxes to 21 percent has mostly benefited large corporations, which could afford to pay more, many economists contend.
With her counterparts in other countries, Treasury Secretary Janet Yellin is working on a proposal to establish a global minimum tax for multinational businesses.
As much as 40 percent of profits multinationals earned in 2017 were cached in tax havens, according to a study from the University of California at Berkeley.
Higher taxes could help offset the cost of Biden’s planned infrastructure program, which will carry a price tag of as much as $4 trillion.
TRENDPOST: Some of the proposed changes to the corporate tax structure could shrink U.S. GDP by 0.8 percent and wages 0.7 percent over time, according to an analysis by the Tax Foundation.
As we have forecast, cities, states, and nations are going to push through tax increases to reverse climbing budget deficits. Beyond the obvious income and property tax increases, there will also be lists of new taxes on items and services that were previously untaxed as well as increases in sales taxes.
In response, there will be strong anti-tax political movements.