PRESIDENT Joe Biden is planning his first major tax hike in almost 30 years after signing the $1.9trillion Covid relief package.
News of a looming increase in taxes comes just days after Biden signed his coronavirus relief bill into legislation.
The tax hike would be the first since 1993 to assist in a long-term economic program, people familiar with the matter told Bloomberg News.
It would act as a follow-up to Biden's Covid relief bill – helping fund key initiatives like infrastructure, climate, and giving more help to poor Americans.
The sources, who wished to remain anonymous, told the news outlet about what the proposals, either planned or under consideration, entail.
They consist of "raising the income tax rate on individuals earning more than $400,000, raising the corporate tax rate to 28 percent from 21 percent, and expanding the estate tax’s reach."
In the aftermath of the most recent stimulus bill, the proceeding initiative will likely be much bigger.
The tax plan has not yet been revealed, however, it could cost as much as $4trillion.
Speaking on MSNBC on Monday, White House Council of Economic Advisers Chairwoman Cecilia Rouse explained there is a small risk of inflation.
Rouse said: "Any economic investment is going to have some risks.
"Yes, there is a small risk of inflation. We will be watching. We [Biden Administration] will be monitoring."
Meanwhile, Biden said that 100 million stimulus checks will be send out and 100 million Covid shots will be given in the next 10 days.
The president made the comments during a Monday afternoon press conference regarding the American Rescue Plan.
"This week I can report help isn't just on the way – it's here," he said.
Biden documented his two "big goals" for the next 10 days – dishing out 100 checks and 100 vaccines.
"100 million checks going into the pockets and or direct deposits on the way to millions of more Americans," Biden said. "That's real progress."
The update comes just days after Biden signed the Covid relief bill into legislation on Thursday.
Since signing the bill, Americans have reported that they have been receiving their relief payments.
The latest round of checks are set to be sent out in full to Americans who make up to $75,000 and married couples who make up to $150,000 a year.
This round will phase out at a lower adjusted gross income (AGI) limit than previous checks, with individuals who make more than $80,000 and couples who make more than $160,000 getting no payment at all.
The IRS confirmed on Saturday that March 17 is the official payment date, though some banks have already started processing the third round of checks, so payments may show up even earlier.
Some Americans took to social media on Friday to share that they had already received their checks, after President Biden said he was "laser focused" on getting the money out.
Source: Read Full Article