Former President Donald Trump warned throughout the 2020 campaign that if elected president, Joe Biden would massively increase taxes to pay for his costly federal spending proposals.
It appears Trump’s warnings were quite prescient, as less than two months into Biden’s presidency, reports indicate that serious discussions are already underway about what could be the largest tax hike in modern American history, according to The Hill.
The suggested tax increases were said to be necessary in order to pay for the $1.9 trillion COVID “relief” bill that just became law, as well as an impending infrastructure spending proposal reported to be even more expensive.
Massive tax increases on the horizon
Bloomberg News, citing several unnamed sources said to be “familiar” with the plans, reported that the tax increase includes raising the corporate tax rate from 21 to 28%, an income tax hike for individuals earning more than $400,000 annually, an expansion of the estate tax, an increase of the capital gains tax rate for those earning more than $1 million, and a scaling down of the tax preferences for so-called “pass-through” entities like limited liability corporations and partnerships.
That would all be in addition to Biden’s already stated plans to repeal and rollback much of the 2017 tax cuts that had been signed into law under Trump.
According to prior analysis of Biden’s potential tax increases by the Tax Policy Center, the plan could conceivably raise tax revenues by upwards of $2.1 trillion within the next 10 years.
That’s assuming, of course, that everything goes according to plan and American businesses and individuals don’t seek out ways to avoid paying those higher taxes.
Tax proposal isn’t guaranteed
While this bold proposal under Biden isn’t particularly surprising, it also isn’t guaranteed to pass easily through Congress, despite the Democratic Party maintaining control of both chambers of the legislative branch, according to the Washington Examiner.
Republicans in both the House and Senate will fight tooth and nail in opposition to the vast majority of the potential tax increases, and there is the possibility that they may be joined in that effort by at least a few Democrats.
One of those Democrats is moderate Sen. Joe Manchin (D-WV) who, while not opposed to raising taxes to pay for increased spending, does object to furtive plans by some of his colleagues to ram those tax hikes through without any Republican input or support by way of special procedural votes.
Both The Hill and the Examiner reached out to Biden’s White House for comment on Bloomberg’s report, but neither outlet received a response.
If the report is true, however, this is just the latest example of how Trump has once again seen his predictions — which are almost always denounced and dismissed by the media — proven to be correct.