President Biden is anticipated to reveal a large spending bill this week centered around addressing “infrastructure needs,” and the multi-trillion-dollar bill will probably require a big tax increase.
The Biden administration is investigating a $3 trillion tax increase, mostly focused on corporations and wealthy Americans, and a total rollback of President Trump’s tax breaks.
When Biden’s White House started creating his jobs and infrastructure program this February, the White House National Economic Council put out an internal memo calling for around $3 trillion in new spending and $1 trillion in tax increases, according to three insiders.
The double-barreled program, which will be revealed this week, includes greater federal spending and tax revenue — with over $3 trillion in tax increases and $4 trillion in spending, said the insiders, who wanted to remain anonymous.
The drafted plan did not include every tax increase that the White House was considering.
The plan could likely raise taxes on corporations and investment income, as well as heighten the individual tax rate for top-earners.
The tax increases are expected to be in two waves. One being an infrastructure measure to be funded by more corporate taxes and the other, to be focused on “domestic priorities,” which would pay for itself by increasing the tax rate on top earners to 39.6% from 37%, and raising taxes on wealthy investors and capping deductions that taxpayers can claim.
Although the program is being marketed as an “infrastructure” bill, and as the second step in Biden’s covid recovery plan, progressives are already attempting to force their pet projects into the bill. This is in addition to Biden’s stated demands being “revamping education, fighting climate change, and revitalizing housing and health care.”
Nancy Pelosi (D-CA) requested on Friday that Democratic committee chairs “begin creating a bold and transformational package” with their GOP counterparts, saying that she hopes bipartisanship will prevail to solve critical needs in education, energy, housing, broadband, and utilities while creating jobs nationwide.
Congress could discuss the bill all summer before it leaves for recess and the 2022 mid-terms start. As of now, the program faces an uphill battle getting approval from moderate Democrats, which President Biden will need if he plans to get the bill through the Senate.
Author: Blake Ambrose