Biden tax hikes could include property taxes
The White House was silent on specific tax proposals ahead of an expected announcement from President Biden on Wednesday, including whether he is currently considering any estate tax adjustments.
Press secretary Jen Psaki said in a press briefing on Tuesday that she did not want to get ahead of Biden’s speech, but that he believed there was more to be done to make the tax code fairer in a way that rewards “work, not wealth.”
The president is expected to detail a number of tax increases, including increasing the personal income rates of wealthier Americans and increasing the corporate tax rate.
Biden also proposed adjusting the inheritance tax by lowering the basic exclusion amount, which was essentially doubled by the 2017 Tax Cuts and Jobs Act.
Lowering it would mean people could transfer fewer assets without triggering the tax, which can be as high as 40%.
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The basic exclusion amount for individuals was $ 11.58 million in 2020, compared to $ 5.49 million in 2017.
Senator Bernie Sanders, I-Vt., Released a proposal last week that would reduce the base exclusion amount to $ 3.5 million and move to a graduated tax rate structure where rates could reach 65 %.
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Key supporters of Biden’s tax measures are expected to raise the corporate tax rate to 28 from 21% and raise income taxes for households and individuals earning more than $ 400,000 to 39.6% from 37%.
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Psaki said on Tuesday that Biden would detail his proposal to pay for the package “over time.” Many believe the legislation will carry a multibillion dollar price tag.
When asked if the president plans to engage with Republicans to pass the package, Psaki said Biden was open to hearing ideas from lawmakers from both political parties. She added that she believed investing in infrastructure was largely a bipartisan idea – although she recognized that Democrats and Republicans may have different ideas on how to pay for it.
RN White of Fox News contributed to this report.