New Biden Tax Hike Details Are Out—Here’s What We Know Now

Plus: Dow Slips 100 Points Ahead Of Fed Chair Powell's Remarks One Year After Covid Market Crash Ended

Topline

The Biden administration is considering a sweeping set of tax hikes to fund its upcoming $3 trillion infrastructure and jobs spending proposals, according to new reporting by the Washington Post.

Key Facts

The details of two massive spending proposals—which remain in flux and have not yet been officially released—were first reported by the New York Times on Monday.

Biden is expected to be briefed on the proposals this week, according to multiple news outlets, which reportedly include some $1 trillion in infrastructure spending, provisions to reduce carbon emissions, an extension of the recently expanded child tax credit and free community college as well as universal pre-K. 

Biden is widely expected to raise the corporate tax rate to 28% from 21% and raise taxes on investment income to help finance all that spending, the Post reported, and officials have also floated reducing federal spending by up to $700 billion over the next ten years to help pay for the massive proposals, according to the Times.

Officials are also discussing raising the global minimum tax from 13% to 21%, eliminating subsidies for fossil fuel companies and imposing U.S. tax rates on multinational corporations, the Post reported, citing people familiar with the discussions.

Biden’s team is also looking at tax hikes for wealthy individuals, including raising the top tax rate from 37% to 39.6% and limiting deductions, according to the Post, though Biden has repeatedly promised that he will not raise taxes for people earning less than $400,000 annually.

White House press secretary Jen Psaki said Monday that reports surrounding the next phase of Biden’s recovery efforts were “premature.”

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