Report: Biden planning major federal tax hike; increase for individuals making $400K

Biden's proposal also calls to raise the corporate tax rate to 28%, from 21%. It increases the capital gains tax rate for those earning more than $1 million and expands the reach of the estate tax.

News 12 Staff

Mar 16, 2021, 9:39 PM

Updated 1,132 days ago

Share:

President Joe Biden is apparently eyeing the first major federal tax hike since 1993 to help pay for his long-term economic program designed as a follow-up to the pandemic relief bill.
According to multiple reports, the hike could be the largest in the country since President Bill Clinton's overhaul in 1993. It reportedly calls to increase taxes for individuals earning more than $400,000.
Biden's proposal also calls to raise the corporate tax rate to 28%, from 21%. It increases the capital gains tax rate for those earning more than $1 million and expands the reach of the estate tax.
Mitchell Goldberg, president of Client First Strategy Inc, says the tax measures will likely take effect in 2022. He thinks the changes might affect "maybe 10% of Long Islanders, and I think that's even being generous."
"Overall when tax rates go up, typically the stock market does well. Typically there's a wealth effect, and typically it means that the economy is doing well," says Goldberg.
No date has yet been set for an announcement, though the White House said the plan would follow the signing of the COVID-19 relief bill.


More from News 12