Democrats who run the country are expected to unveil a stimulus plan that could cost the nation an unprecedented sum.
The Joe Biden administration is preparing to announce an infrastructure, climate, and jobs proposal that could cost twice the amount taxpayers contributed for the largest-ever $1.9 trillion Chinese Communist Party (CCP) virus stimulus package.
“Biden advisers are [now] weighing a price tag of between $3 trillion and $4 trillion for new legislative action, including repairing the country’s crumbling infrastructure and tackling climate change,” an anonymous White House official said according to Reuters.
Another source suggested the same advisers expect the figure is likely to be up to $3 trillion for “infrastructure and other priorities they are discussing with the president this week,” according to The Hill.
Press Secretary Jen Psaki confirmed the proposal is part of the American Rescue Plan, which aims to rebuild the national economy after the CCP virus recession.
“Relief is headed out the door thanks to the American Rescue Plan,” she said on Twitter. “[The] focus will be on jobs and making life better for Americans.”
Psaki also revealed the plan also aims to make wealthy Americans contribute more of their hard-earned money to the Internal Revenue Service.
“He is focused on building our economy back better, and ideas he talked about on the campaign trail, from investing in infrastructure to care giving, to making sure the tax code rewards work and not wealth,” she said.
The Democrat refused to provide specific details about the plan before the Oval Office makes an official announcement.
“[Biden] is considering a range of options, scopes and sizes of plans and will discuss with his policy team in days ahead,” she said. “Speculation is premature, given @POTUS does not plan to lay out additional details this week.”
Biden is widely expected to raise taxes to help pay for further stimulus packages because taxpayer funds alone are unlikely to be enough to cover the soaring cost, according to people familiar with the matter.
This potentially includes:
- expanding estate tax reach
- raising the corporate tax rate from 21% to 28%
- lifting the income tax rate on individuals earning more than $400,000
- increasing the capital gains tax rate for anyone earning at least $1 million a year
- winding back tax preferences for partnerships, limited liability companies, and other so-called “pass-through businesses.”
“The next initiative, which is expected to be even bigger, will not rely just on government debt as a funding source,” Bloomberg News White House correspondent Nancy Cook and reporter Laura Davison reported.
“Treasury Secretary Janet Yellen has said at least part of the next bill will have to be paid for and pointed to higher rates. Key advisers are now making preparations for a package of measures that could include an increase in both the corporate tax rate and the individual rate for high earners,” Cook and Davidson added.