President Joe Biden’s tax plan includes higher levies on businesses and wealthy Americans, with relief for middle-class households, including those in the $ 110,000-a-year income range, a White House economic aide said Tuesday.
“The key here is that the president firmly believes that the biggest companies and those that have done very well over the past few decades should pay a little more,” said Bharat Ramamurti, deputy director of the National Economic Council, on Tuesday in an interview with Bloomberg Television.
A goal of Biden’s upcoming tax program will be to encourage large corporations and multinational corporations to increase their investments in the U.S., Ramamurti said. Wealthy individuals who benefited themselves during the Covid-19 crisis will receive higher royalties, he said.
Previously: Biden Eyes first major tax hike since 1993 in the next economic plan
“We to hope to work with Congress to achieve these goals, ”Ramamurti said without offering a schedule for announcements. “The president’s tax plan is designed to ensure that middle-class families do not pay more than their fair share and that it is the richest people who have by and large done well in recent years, including last year pay a little more. “
Top Republicans are already warning that the Democrats will have to go it alone with any infrastructure-driven program, some of which is paid for with higher taxes. Senate minority chairman Mitch McConnell said Tuesday that there would be no bipartisan support for such a move.
$ 110,000 for families
Biden is expected to present his longer-term proposal entitled “Build Back Better” at a joint congressional session in the spring.
Ramamurti pointed out that in addition to helping lower-income households, middle-class households would also benefit from the Biden Plan.
When asked how the middle class might be defined, Ramamurti said, “A teacher and a nurse who together make $ 110,000 deserve relief. And what we’ve seen in the data is that families with such a profile have suffered. “
Parents with children have been relieved with expanded child tax credits in the $ 1.9 trillion pandemic relief bill signed last week, Ramamurti said. But despite demands from Democratic lawmakers, including Home Remedies Chair Rosa DeLauro, to make this move permanent, White House aides on Tuesday refrained from making such a commitment.
“I think time will tell whether this policy is permanent or not,” said Heather Boushey, member of the Council of Economic Advisers, on MSNBC.
Ramamurti said that Biden said, “He is interested in seeing this. Obviously we are not quite at this point.
The Republicans have blown the Biden administration’s tax plan, which Bloomberg News reported on Monday would mark the first major rate hike since the Clinton administration in 1993.
“The Biden-Harris administration is delivering on its election promise to tackle job cuts tax hikes,” said Rick Scott, Florida Senator, chairman of the Senate GOP campaign arm, in a statement Tuesday. “When people across the country recover from this economic crisis, the last thing they have to do is send their hard-earned money to fund the big Democratic government agenda.”
The Chamber of Commerce on Tuesday also highlighted its persistent opposition to a corporate tax rate hike, saying it would “the United States A less attractive place to invest profits and find corporate headquarters. “
Read: McConnell rules out support for tax-backed infrastructure
Instead of collecting taxes, McConnell and other Republicans have again proposed removing the 40% tax on properties over $ 11.7 million, and couples are doubling that amount.
Senator John Thune, Republican No. 2 Senate, said Tuesday that Republicans had doubled the inheritance tax exemption in 2017 but is expected to expire by the middle of the decade. “Doubling the exemption is not enough,” he added, warning of the impact on ranchers.
McConnell on Tuesday predicted that Biden’s next economic program would see the Democrats pursuing a budget vote that would require a simple majority to pass. It would be a “Trojan horse” flagged as an infrastructure bill but overflowing with liberal priorities including various tax increases, he said.
Boushey emphasized that the US economy has performed well after the recent tax hikes. Then-President Bill Clinton’s 1993 economic program included higher income tax rates and the latest increase in the national gasoline tax, and came at a time when unemployment remained high after the 1990-91 recession.
There are arguments that tax hikes “will inevitably thwart growth, but we didn’t see that in the 1990s,” Boushey said. “The second half of the 1990s were years that were actually pretty good for working Americans. It was a time when inequality actually ended and wages rose in the lower half of the wage distribution. “
– With support from Tom Keene, Lisa Abramowicz, Josh Wingrove, Matt Shirley, Erik Wasson, Laura Davison and Steven T. Dennis
((Updates with McConnell opposed to tax increases starting with the fifth paragraph.)
Before it’s here, it’s in the Bloomberg Terminal.