BIDENS LIKELY TAX WINS PART TWO
Bidens likely tax wins part two. Family tax credits may be the biggest winner under the Biden tax agenda. Passage of family tax credits was expanded by quite a bit. This was seen as part of the broader pandemic relief bill. It featured a one year expansion of the child tax credit, dependent care credit and the earned income credit. Democratic lawmakers want to make those changes permanent–which would come with a price tag of $1.6 trillion for the child tax credit alone, according to a Tax Foundation estimate. Democrats are hoping that the increase for 2021 will prove to be so popular with voters that they’ll be able to secure an extension for beyond this year. Bidens likely tax wins part two.
IRS audits. Audit rates at the IRS have plummeted in recent years, due to the failure of Congress to fully fund the IRS. It has taken some time, but the Congress finally decided, with increasing deficits, that funding the IRS makes a lot of sense, as they bring in nearly $12 for every dollar invested into the agency. The Collection Division and Audit Division will be the primary beneficiaries of the money haul. Money was already given the IRS to upgrade the old compute system, and they are in the process of hiring a large number of additional IRS employees. This will all add up to a beefed up IRS, once again able to perform its task of efficiently collecting tax revenue.
Corporate Tax. Biden is pushing to roll back part of President Trump’s massive corporate tax cut from 2017, taking it up to 28% from the current 21%. Some in the Congress want to roll it up to 35%, but its unclear if President Biden, to keep support for the proposal, will go that far. That raise, to 28%, could raise $727 billion over a decade, according to the Urban-Brookings Tax Policy Center. Some were skeptical of a increase of that amount, but the President is set to pay for a large portion of his agenda, so as not to raise the deficit if possible.