Biden tax plan forecast to bring in $3.6tr in decade

Bloomberg

President Joe Biden’s proposed tax hikes are forecast to bring in $3.6 trillion over the next decade, the Treasury Department said, a key funding source for the $4 trillion he hopes to spend remaking the American economy and social safety net.
The figure, representing the sum of all tax increases if enacted by Congress, came as is part of the “Greenbook” report that accompanies the White House’s $6 trillion 2022 budget request. It effectively serves as the revenue side of the ledger, against Biden’s spending priorities in the budget.
After accounting for the $1.2 trillion in tax credits for clean energy, electric cars, low-income families and housing investment, the plan would net Biden about $2.4 trillion to invest in other economic priorities. The White House has said that the $4 trillion combination of its American Jobs Plan and American Families Plan would be fully paid for over 15 years.
The Greenbook, which hasn’t been released since President Barack Obama’s final year in office in 2016, is the most comprehensive look at the tax and revenue proposals the administration endorses.
The document spans the gamut of Biden proposals, including a global minimum corporate tax, an increase in the levy on capital gains at death and closing the carried interest tax break for fund managers, all of which Biden has already outlined in his funding proposals for his longer-term spending plans.
The top income tax rate would increase to 39.6% from 37% starting in 2022, according to the proposal. Married couples earning $509,300, individuals earning $452,700 and heads of households earning $481,000 would be affected by the increases.
The proposal was met with criticism from Republicans who said now is not the time to raise taxes. Senator Mike Crapo of Idaho, the top Republican on the Senate Finance Committee, said in a statement Biden’s plan would “strangle the economy with regulations and red tape.”