Joe Biden’s push to raise taxes on the wealthy has been the trademark of his campaign since running for president. Now that he has been elected he has been pushing to gain support from the Republican Party to get the tax law passed through congress. With Biden finally getting approval for his COVID relief package, which cost congress around 1.9 trillion dollars, his next agenda has been the tax brackets.
Biden’s tax proposal begins with raising taxes for those whose income is above $400,000 a year. Anybody making this or more would see and small to a significant tax increase. Anybody below $400,000 a year isn’t considered to be in the wealthy class, which is about 90% of the US. Biden has an outline of how he plans to move forward with his tax plan. This includes raising the tax rate for corporate companies to 28 percent, raising the top individual income tax rate from 37 percent to 39. Joe’s initial plan of raising taxes on the wealthy is to essentially balance the means of taxation on Americans based on class. His plan also requires that he raises the tax percent on childcare from 35 percent to 50. Biden’s tax plan also proposes that the income tax rate on corporate companies be raised from 21 percent to 28 percent.
In addition to doubling the tax rate for major companies Biden wants to establish tax credits for manufacturing communities that will reduce the tax liability of business and in return help to stop workforce layoffs. With his tax plan in motion Biden also has to consider the pandemics a major setback to what he is trying to accomplish.
The economic impact that the coronavirus pandemic has had on the United States as a whole has caused an increase in unemployment. As Biden has set a plan in motion to safely guide the economy back into business he has also tried to raise taxes to a reasonable point so that the American economy can still flourish.
Biden’s plan was laid out for all to see during his campaign and immediately after his election was set in motion to gain approval from the congress. As the Democratic Party tries to gain more seats in the house of representatives Biden will continue to push for all his tax laws to be passed and set in motion. With the covid pandemic and economic fallout within the United States Biden feels it’s important to pass these tax laws in order for the country to move for without falling into an economic depression.