Politics Biden floats biggest tax hike since Clinton, who paid the price
Goldman Sachs: Joe Biden's tax hikes won't be as big as he wants
President Joe Biden got almost everything he wanted with his $1.9 trillion economic rescue plan. Goldman Sachs thinks Biden will face far more resistance in his quest to unwind former President Donald Trump's tax cuts.Biden campaigned on hiking the corporate rate from 21% to 28%, raising the tax on foreign income and instituting a minimum corporate tax rate.
To help pay for his, President Joe Biden on Wednesday proposed the first major tax increase since 1993.
That’s when President Bill Clinton signed omnibus legislation that raised the gasoline tax and increased the top marginal income tax rate by one-third. The ensuing backlash cost Democrats control of Congress and swept in the first Republican majority in the House in 40 years.
Biden, whose economic teamtoo much additional deficit spending would prove destabilizing by spiking interest rates and boosting federal debt payments, is hoping the tax increases will be seen as skewed enough against the wealthy and corporations to avoid any broad-based resistance.
Biden to propose $2 trillion infrastructure, jobs plan funded by corporate tax hike
The White House is comparing President Joe Biden's infrastructure proposal to the construction of interstate highways and the Space Race.The White House is billing the proposal, dubbed the American Jobs Plan, as a domestic investment not seen in the U.S. since the construction of the interstate highways in the 1950s and the Space Race a decade later.
“The president has a plan to fix our infrastructure and a plan to pay for it,” White House press secretary Jen Psaki told reporters on Monday.
The first salvo in Biden’s “Build It Back Better” program is being billed as an infrastructure program, although traditional projects such as roads and bridges make up less than half of the new spending. A more comprehensive package of liberal domestic policies is slated to follow.
Republicans were eager to shift their focus to the tax side of the tax-and-spend equation. “And how will Biden pay for his plans that cost much but accomplish little? Tax hikes,” the party's national committee charged in a statement. “Joe Biden is alreadyon his tax campaign pledge and is proposing tax increases that directly .”
Joe Biden’s Presidency Has Highlighted the Rifts in the American Catholic Church
While Biden’s personal faith can’t be untangled from his politics, he also advocates policies out of step with Catholic doctrine.While Biden’s faith is deeply felt, his election has exposed divisions at the highest levels of the Catholic Church. Within days of his victory, 10 of the nation’s most powerful bishops took the extraordinary step of launching a “working group” on how to approach a Catholic President like Joe Biden. The panel met twice over Zoom, in December and January.
“I think raising taxes in the middle of a pandemic and economic crisis isn't just politically negligent but economically stupid,” said Republican strategist Matt Gorman.
The White House is adamant that the direct tax increases will be confined to households earning at least $400,000 a year. The corporate tax rate would be increased from 21% to 28%, partially negating a cut signed into law by former President Donald Trump in 2017. Biden would also like to restore the Clinton-era top personal tax rate of 39.6%. Capital gain would be taxed as regular income, and unrealized capital gains would be subject to tax at death. The capital gains tax was actually lowered under Clinton.
Democrats are confident they can win the tax argument if the additional levies are seen as hitting the rich. A Politico/Morning Consult poll found voters prefer an infrastructure plan that would be paid for by higher taxes on corporations and upper-income earners to one that was not.
In new memoir, Hunter Biden reframes some political scandals but omits others
After a year of withering attacks, Hunter Biden has emerged with a new memoir that seeks to reframe some of the scandals that nearly derailed his dad's presidential bid. In "Beautiful Things," out next week, Hunter Biden charts a life defined by tragedy, addiction and scandal -- all in the shadow of a doting and concerned father, Joe Biden, whose ascent to the White House came during some of his son's darkest moments.
Republicans are casting doubt on whether these tax increases will be sufficient given the Biden administration’s spending ambitions. Repealing the Trump tax cuts for the wealthy only, as former President Barack Obama sought to do with George W. Bush tax reductions before him, would likely recoup less than $150 billion. Unlike Clinton, Obama managed to avoid being viewed as middle-class tax hiker but also saw his party lose the House in 2010 and then the Senate in 2014.
“Transportation Secretary Pete Buttigieg refused to rule out any tax hike ‘’ and Commerce Secretary Gina Raimondo conceded middle class tax hikes may be necessary because they ‘ ’ to pay for Biden’s far-left agenda,” said the Republican National Committee statement.
Further complicating matters is the push by some congressional Democrats, including Senate Majority Leader Chuck Schumer of New York, to lift the cap on state and local tax deductions imposed in legislation signed by Trump. The tax hit disproportionately affects relatively affluent blue-state professionals. Eliminating the cap would cost money and muddle the Democrats’ message on taxes.
Derek Chauvin trial, COVID-19 vaccine side effects, FLOTUS agenda: 5 things to know Wednesday
The Derek Chauvin trial will continue with more expert testimony, a study on COVID-19 vaccine side effects is out and more news to start your Wednesday.Start the day smarter. Get all the news you need in your inbox each morning.
Democrats don’t have many votes to spare. The Senate is split 50-50, with Vice President Kamala Harris holding the tiebreaking vote. They command 219 votes in the House. With far bigger majorities, the 1993 Clinton tax increase passed by just one vote in the House and former Vice President Al Gore’s tiebreaking vote in the Senate.
“Republicans have to focus on three things,” said GOP strategist John Feehery. “Make sure that the package is paid for because we can't afford another spending spree. Make sure the middle class doesn't get stuck with the bill because we know that's what the Democrats are going to try to do. Make sure the Democrats don't try to cut taxes for their donor class by repealing the SALT deduction.”
“I think they need to be more specific than just a general anti-tax pledge because who cares if Warren Buffett or Mark Zuckerberg have to pay more taxes,” Feehery added.
Tags:, , , , , , , , ,
White House Sees GOP’s Corporate Tax-Cut Defense as a Big Loser .
The White House views Republican attacks on President Joe Biden’s proposal to use corporate tax hikes to pay for a vast infrastructure program as a losing argument in the battle for public opinion, aides and allies of the administration say. The GOP -- which successfully painted the Obama-Biden administration’s initial spending programs as economically ineffective and wasteful in the run-up to the 2010 congressional elections -- has joined with the business lobby in the past week to assail Biden’s proposed tax increases.