WASHINGTON (Pakistan Point News / Sputnik - 23rd March, 2021) The Biden administration is examining changes to the US tax policy as the economy reopens from COVID-19 lockdowns and higher revenue is needed to fund infrastructure development, among other things, Treasury Secretary Janet Yellen said on Tuesday.
"As the country begins to safely reopen and our economy recovers, we are examining changes to tax policy in the correct direction," Yellen said in testimony before the US Congressional House Committee on Financial Services. "We expect to examine changes to tax policy along with programs that will address some of the long-standing problems that have held down productivity and labor supply in the United States that will address infrastructure."
President Joe Biden plans to raise corporate taxes from 21 percent to 28 percent to pay for US development in the post-pandemic era, under what will likely be the first major Federal tax overhaul in almost 30 years, officials familiar with the proposed changes have told Sputnik.
Biden has also said for months that he plans to raise taxes on individuals earnings $400,000 or more in a year.
The current US tax code has seven income/tax brackets for individual earners, with the lowest tax rate being 10 percent and the highest 37 percent. It is not known what hike the president and his team are planning for the highest-earning Americans.
The tax-driven stimulus package will follow the $1.9 trillion "American Rescue Plan" to immunize the entire US adult population from the coronavirus; provide personal aid to individuals and financial grants for� states and businesses; and help the unemployed get back to work.
