The White House is reportedly considering hiking the corporate income tax to 28 percent and raising individual income taxes on high earners to pay for more federal spending.
by Eric Boehm
President Joe Biden is reportedly considering a plan to hike taxes on individuals and corporations in order to help offset another splurge of government spending. Preliminary analyses of the possible tax hikes show they would transfer as much as $2 trillion from the private sector to the government, likely costing jobs and reducing wages for American workers.
Of course, that’s what taxes do. Every dollar the federal government drains from the economy is a dollar that cannot be used to grow a business, cannot be used to purchase new equipment, and cannot be paid to workers or shareholders.
Biden is considering hikes to both the personal income tax and corporate income tax, Bloomberg reports, citing unnamed White House sources. Advisers are reportedly kicking around ideas like raising the corporate income tax rate to 28 percent (from 21 percent); hiking personal income taxes on individuals and households that earn over $400,000 annually; and imposing a higher capital gains tax for individuals who make over $1 million annually. The higher taxes would be paired with an expected White Houe announcement of what’s likely to be a multi-trillion-dollar infrastructure spending package.