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Biden Eyes First Major Tax Hike Since 1993 in Next Economic Plan

  • Tax increases would help fund long-term U.S. recovery program
  • Corporate, capital-gains levies targeted for hikes, aides say
Bloomberg business news
Biden Eyes Federal Tax Hike in Long-Term Economic Plan
Updated on

President Joe Biden is planning the first major federal tax hike since 1993 to help pay for the long-term economic program designed as a follow-up to his pandemic-relief bill, according to people familiar with the matter.

Unlike the $1.9 trillion Covid-19 stimulus act, the next initiative, which is expected to be even bigger, won’t rely just on government debt as a funding source. While it’s been increasingly clear that tax hikes will be a component -- Treasury Secretary Janet Yellen has said at least part of the next bill will have to be paid for, and pointed to higher rates -- key advisers are now making preparations for a package of measures that could include an increase in both the corporate tax rate and the individual rate for high earners.