President Biden proposed a range of tax hikes in his annual budget request to Congress that would significantly increase rates paid by wealthy Americans and corporations.
The tax hikes are a part of the president’s sweeping budget blueprint for federal spending in fiscal 2024. The proposals include an increase in income tax rates for Americans earning $400,000 or more, reversing part of the Trump-era Tax Cuts and Jobs Act, raising the federal capital gains tax rate to 39.6% from 20%, and increasing the Obamacare tax from 3.8% to 5%.
The president is also pushing for a 25% minimum tax rate for households worth more than $100 million, and a quadrupling of the 1% levy on corporate stock buybacks.
Takeaways:
President Biden’s proposed tax hikes would significantly increase rates paid by wealthy Americans and corporations. The proposals include an increase in income tax rates for Americans earning $400,000 or more, raising the federal capital gains tax rate, and increasing the Obamacare tax.
The president is also pushing for a 25% minimum tax rate for households worth more than $100 million. Biden’s budget proposal also calls for a quadrupling of the 1% levy on corporate stock buybacks.
The proposals are unlikely to garner support in a deeply divided Congress and face almost certain rejection from Republicans.
Commentary:
Republican lawmakers are expected to oppose President Biden’s tax proposals. Republicans argue that the proposed tax hikes will harm the economy, slow down job creation, and stifle innovation.
They believe that the tax hikes will discourage businesses from investing in the United States, which will ultimately hurt workers and consumers.
Republicans also point out that the U.S. economy is still recovering from the COVID-19 pandemic and that raising taxes on corporations and wealthy Americans could undermine the recovery.
Republicans are calling for a more targeted approach to tax reform that would support economic growth and job creation while ensuring that all Americans pay their fair share of taxes.
Source https://www.foxbusiness.com/politics/biden-pitches-soak-rich-tax-plan-heres-whats-it
