Bloomberg news is reporting that President Biden’s administration is working on its first tax increase, which will hit high earners the hardest. The article begins as follows:
With the Covid-19 relief bill behind him, U.S. President Joe Biden is turning his attention to the next item on his agenda: tax reform.
He’s said to be planning the first major federal tax hike since 1993, with the aim of delivering on one of his campaign promises. Biden’s proposal will mostly affect those earning more than $400,000 a year and could prove to be the vehicle with which he’ll pay for some of his long-standing economic and infrastructure plans.
The Biden administration is drawing up its plan at a time when at least half a dozen states are also considering raising taxes for the wealthy in response to the economic fallout from the coronavirus pandemic.
The proposed policies could shape the way millions of Americans save, spend and manage their finances for years. While the specifics of each package are still being determined, there’s several ways with which those plans could affect your money.
Posted by Lewis J. Saret, Co-General Editor, Wealth Strategies Journal.