The Biden Administration is looking at tax increases on businesses, investors, and rich Americans in the country to pay for the Administration’s infrastructure and jobs package, according to an anonymous source for the Washington Post. The plan itself is divided into two main components: one focused on infrastructure and clean energy and another based on domestic priorities like childcare and universal Pre-K. The measures to pay for the plan would, in part, reverse some of the changes made by the infamous 2017 Republican tax bill, raising the corporate tax rate from 21% to 28%, raise the global minimum tax paid from 13% to 21%, as well as increase the highest income tax rate from 37 to 39.6% and eliminate deductions that the wealthy claim annually. It would also end subsidies for fossil fuel companies, and force multinational corporations to pay the US tax rate, rather than a lower one from foreign subsidiaries.
This is seen as somewhat inevitable given that Biden’s Covid stimulus package was funded almost entirely by adding to the national debt. Republicans, business leaders, and certain Democrats, will almost certain be opposed to the measures. But it makes sense. The one group of Americans who managed to actually benefit from the Pandemic were the wealthy. So, the only people affected by the proposal will be those who earn over $400,000
It’s a start.
I worry, though. As the article points out, this is essentially what Joe Biden ran on during the campaign. The fact that this is coming out now suggests to me that it’s going to get whittled down before long. And keep in mind, none of this is especially revolutionary. I remember what it took to get Obamacare through and that, for all of the good that program has done, it’s far from what we need. I will say though, if we can get the rich to actually pay their taxes, force corporations to pay what our tax rate, decrease the amount of money they can pass down to their heirs, just so we can pay for better bridges and roads, and more access to Pre-K programs for parents? I think that alone is pretty well worth it. We’re in a huge dang hole right now, and we can’t really do anything big just yet. So, it’s a start.
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