Biden plans 1st major tax hike since 1993 — here’s what it could mean for your money

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WASHINGTON (NewsNation Now) — President Joe Biden is planning to execute the first major tax hike in federal taxes in almost 30 years, Bloomberg reported Monday.

However, Biden remains committed to his campaign pledge that no one earning less than $400,000 should see an increase in their taxes, White House Press Secretary Jen Psaki said.

Psaki said the Biden administration was working closely with members of Congress about how best to fund plans for an ambitious infrastructure package, but those plans had not been finalized yet.

“His priority and focus has always been on people paying their fair share, and also focusing on corporations that may not be paying their fair either,” Psaki said. “That remains his overarching approach, but there isn’t a package yet.”

The planned increases reportedly include raising the corporate tax from 21% to 28%, increasing the income tax rate on people making over $400,000, expanding the estate tax, paring back tax preferences on pass-through businesses such as limited-liability companies, and setting up a higher capital-gains tax rate for individuals making at least $1 million, according to Bloomberg’s reporting.

The tax hike, the first such measure since Bill Clinton’s overhaul in 1993, will likely include repealing former President Donald Trump’s 2017 tax law, which benefitted corporations and wealthy individuals, Bloomberg reported, citing sources.

In 2020, Biden’s campaign published the following about his tax plan:

As President, Biden will require corporations and the wealthiest Americans to finally pay their fair share. He won’t ask a single person making under $400,000 per year to pay a penny more in taxes, and will in fact enact more than one-dozen middle class tax cuts that will finally give working families the financial support they deserve.

Reuters, WTRF-TV, The Associated Press and Nexstar Media Wire contributed to this report.