On the 15th local time, US President Joe Biden makes a remark on economic stimulus measures in the White House State Council in Washington. 〈Photo = AFP Yonhap News〉Amid the passing of an economic stimulus measure worth $1.9 trillion (about 2,100 trillion won) in the United States, reports have been reported that the US President Joe Biden’s administration is pushing for an increase in taxation in 28 years.
On the 15th local time, Bloomberg News reported that the Biden administration is planning a comprehensive federal tax increase as a follow-up to the stimulus package, citing sources.
This is the first tax increase since 1993.
It is promoted in order to reduce the financial burden caused by the implementation of the Corona 19 economic stimulus policy and the promotion of infrastructure construction and to increase tax equity.
First of all, there is a plan that former President Donald Trump will slightly increase the corporate tax from 35% in 2017 to 21% to 28%.
In addition, a policy to raise the tax rate for those with capital gains of more than $1 million per year (approximately 1.13 billion won) and increase the income tax for high-income earners earning more than $400,000 per year (approximately 450 million won) was reviewed. There is.
However, there are no plans to raise taxes for those who earn less than $400,000 a year.
〈Photo = AP Yonhap News〉This increase is based on what President Biden made during the presidential election.
At the time, the U.S. Tax Policy Center analyzed that if the tax increase proposal is realized, the tax revenue will increase by 2.1 trillion dollars (about 2,380 trillion won) over the next 10 years.
Experts also predict that tax revenues will increase from about 2 trillion (about 2,260 trillion won) to a maximum of 4 trillion (about 4,530 trillion won) depending on the tax increase proposal.
However, it seems difficult for the increase to cruise.
According to The Hill, a political media in the United States, even Democrats are hesitating about raising taxes. This is because the unemployment rate due to Corona 19 is still high.
Republican lawmakers are opposed to raising tax rates, saying it could undermine a company’s competitiveness.
Senate Republican Representative Mitch McConnell has been warned that “we will discuss the appropriateness of a major tax increase.”
The Bloomberg news agency said, “This is an opportunity to increase support for the poor and to address the inequalities of the Democratic Party’s tax system,” he said. “It will be a test of President Biden’s leadership.”