BIDENS TAX RAISE PLAN HAS PUSHBACK
Bidens tax raise plan has pushback. The plan’s that President Biden has to transform the U.S. Economy after the Covid economic fallout were supposed to be a pay as you go plan. yet pushback from Republicans in Congress has made that more difficult. Six months into his tenure, Wall Street remains divided over the likelihood of one of his campaign promises; higher taxes. Among the many components of the Biden tax plan are an increase in the corporate tax rate to 28% from 21% and the top individual income tax rate to 39.8% from 37%. The GOP remains resolute against tax increases, and contends that hiking the corporate tax rate could risk a fragile economic recovery. “I don’t want to say that the fight is over on that quite yet, because I know that there are still proponents of that, but I think that they are hard fights,” says former Treasury official Tony Fratto. While the president and his Cabinet have made progress in persuading foreign partners to back a global minimum corporate tax rate, the Biden team does not appear to be any closer to passing the types of sweeping tax reform he promised during the 2020 campaign. Bidens tax raise plan has pushback.
Among the many components of the Biden tax plan are an increase in the domestic corporate tax rate to 28% from 21% and the top individual incomet ax rate to 39.6% from 37%. White House officials also want to raise the capital gains tax rate on those making more than $1 million a year from its current 20% to 39.6%. But with GOP resolute against tax increases, and with a handful of economists concerned that raising taxes now could risk the economic recovery, some say the outlook for the administration’s tax plans has grown murkier in recent months. Those tax increases were central to Biden’s middle class economic agenda. That agenda could help lift the middle class and help them pay bills, including tax bills, alleviating the need for Tax Resolution Services. The chances of big tax reform in the near term seem reduced, said Tony Fratto, who served as Treasury official in the George W. Bush administration.