White House seeks to raise taxes on wealthy and corporate

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Psaki told a White House briefing that Biden believes “those at the top are not doing their part” and “obviously companies could pay higher taxes.”

Treasury Secretary Janet Yellen suggested on Sunday that a tax hike could be on the horizon when she said she expected the White House to make proposals over time to bring it under control deficits.

“(Biden) did not propose a wealth tax, but he proposed that wealthy businesses and individuals pay more in order to meet the needs of the economy, the expenses we have to make, and over time, I think we will put in proposals to bring the deficits under control, ”Yellen told ABC.

Then-candidate Biden proposed raising the top federal tax rate from 37% to 39.6%, its pre-Trump level. According to his plan, the corporate tax rate would drop from 21% to 28%. It would also establish a minimum tax on books of 15% and tax increases on international profits.

Biden has pledged not to raise taxes for those who earn less than $ 400,000 a year, which is over 90% of taxpayers. He had also proposed changing the way 401 (k) retirement savings accounts are treated in the tax code in order to give low-income people greater tax relief up front.

Psaki said Monday that Biden shared the view of Liberal Massachusetts Senator Elizabeth Warren that “middle-class families pay more than their fair share and those at the top are not doing their part” when asked him if Biden was considering a wealth tax.

Warren, Washington Rep. Pramila Jayapal and Pennsylvania Rep. Brendan Boyle earlier this month unveiled the Ultra-Millionaire Tax Act that would impose a 2% annual tax on household and trust equity between $ 50 million. $ 1 billion and a 1% annual surtax on assets over $ 1 billion, for an overall tax of 3% on billionaires.

Warren pitched the idea of ​​a wealth tax when she ran for president in 2020. Yellen said on Sunday that a wealth tax was “something we haven’t decided yet.”

“President Biden proposed during the campaign a higher tax rate on corporations, individuals and on payments, capital gains and dividend payments that are received, and these are alternatives that address – that are similar in their impact to a wealth tax, ”Yellen told ABC.

CNN’s Katie Lobosco contributed to this report.

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