As reported by Bloomberg and confirmed by Axios, the Biden administration is preparing to introduce a range of tax hikes that will target affluent Americans and big corporations.

As per reports, the Biden administration’s latest budget proposal to Congress, set for release on Thursday, will feature a 25% minimum tax on the wealthiest 0.01% of the American population.

Under the proposed budget, a loophole that enables affluent investors with “passthrough businesses” to evade taxes on their investments would be eliminated.

In addition, the new budget would revert the tax bill introduced during the Trump era by raising the top tax rate for individuals earning $400,000 annually from 37% to 39.6%.

Moreover, the budget proposal includes raising income taxes on both corporations and billionaires.

According to a White House official, the proposed budget would establish the corporate tax rate at 28%, which is still lower than the pre-2017 tax law rate of 35%.

A briefing on the proposal is scheduled to be held by the administration on Thursday morning.

Written by staff