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Administration Considering Tax Increases

As discussed in our Nov. 20 blog, the Biden Administration is considering increasing taxes. Whether that will be accomplished is, of course, speculative. But given that the Democrats have a majority in the House and Senate, we are experiencing a historically high federal deficit and President Joe Biden is proposing a sweeping two-part “infrastructure, climate and jobs” plan estimated at $3 trillion, a tax increase is perhaps a bit more likely now.

To pay for this infrastructure package, the following are likely to be the proposed federal tax changes:

  • Raise the corporate tax rate from 21 to 28%,
  • End subsidies for fossil fuel companies,
  • Require multinational corporations to pay the U.S. tax rate rather than the lower rate paid by their foreign subsidiaries,
  • Increase the top individual income tax rate from 37 to 39.6%,
  • For taxpayers reporting more than $1 million in taxable income, their capital gains would be subject to the 39.6% rate, and
  • An increase in taxes for appreciated assets passed through an estate.

While obviously controversial, the plan does not necessarily need Republican support to become law.

Biden Announces Huge Infrastructure Plan to 'Win the Future'

Biden Wants to Pay for Infrastructure Plan With 15 Years of Corporate Taxes

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