Biden Plans First Major U.S. tax Increase in Decades

6053578c4805c imageI told you so. 

President Joe Biden is planning the first major federal tax hike in nearly 30 years.

Biden has not released the full tax plan, but sources told Bloomberg the proposed changes would raise taxes, including the corporate tax rate, to help fund an anticipated several trillion dollars in additional federal spending.

The Biden administration reportedly plans to raise the corporate tax rate from 21 percent to 28 percent, increase the tax rate on individuals earning more than $400,000, and raise the capital-gains tax rate for those making more than $1 million per year. The increases would likely begin in 2022.

“Anybody making more than $400,000 will see a small to a significant tax increase,” Biden told ABC News in a televised interview Wednesday. “If you make less than $400,000, you won’t see one single penny in additional federal tax.”

Many of the details of the plan remain unknown, but it is estimated to raise anywhere from $1 trillion to $4 trillion in additional tax revenue. The Tax Policy Center analysis of Biden’s tax plan during the campaign found it would raise $2.1 trillion over 10 years. Once the legislation has gone through Congress, though, that number could change.