BIDENS MOST LIKELY TAX HIKES
Bidens most likely tax hikes. Democrats will likely prove successful in raising individual income tax rates and in strengthening audits of wealthy Americans as they work on overhauling the U.S. Tax Code in coming months. That’s a key takeaway from a survey of 15 current and former White House and congressional aides specializing in tax policy completed by Bloomberg this month. A tax on unrealized capital gains, as envisioned by Senate Finance Committee Chair Ron Wyden, was deemed impossible to get through Congress, the survey showed. President Joe BIden is planning what would amount to the biggest set of tax increases since 1993 to help pay for infrastructure, clean energy and social initiatives as part of his longer term follow up to the $1.9 trillion pandemic relief package. With Republicans voicing opposition, Democrats must secure their moderate members support in the 50-50 Senate, making the tax program politically challenging to pull together. Bidens most likely tax hikes., and “There is fairly strong consensus to tax the rich and corporations more–but a fairly strong consensus means you need to go all 50,” said Steven Rosenthal, a senior fellow at the Urban Brookings Tax Policy Center and former counsel with the Joint Committee on Taxation. “Tax increases are hard, even good tax increases.
Raising taxes harms some people.” A corporate tax hike, set to be a key component of the Biden plan, was seen as a slightly more difficult to enact than boosting individual rates, with expanded levies on estates ranking just behind. The most likely tax change of all, according to the experts, is an expansion of credits for families, something that would add to the program’s total costs. Another easy win, the survey suggests, is strengthening at the Internal Revenue Service. Treasury Secretary Janet Yellen said that along with tax policy changes the administration plans, she would support funding for stepped up IRS collection efforts. It has taken some time for both Democrats and Republicans to agree to increased funding for the IRS and those who owe the IRS may need Tax Resolution Services when the IRS comes knocking.