President Joe Biden's plan for taxing richer Americans will likely rest on the results of the midterm elections.
"It's just very clear that if you have one of the chambers in Republicans' control, that the majority of the Biden tax plan, as we've known for several years, is simply off the table," John Gimigliano, a former House GOP aide now at KPMG LLP told the Wall Street Journal Saturday.
Since the start of his 2020 presidential campaign, Biden said he wanted to increase taxes on corporations and the wealthiest Americans, ensuring they were paying "their fair share," as part of his tax agenda once taking the presidency.
Although Biden won the office, and Democrats narrowly control both the House and Senate in Congress, Republican victories in November could derail much of his tax agenda heading into the last two years of his first term, the publication reports.
"The president's economic vision is about continuing to deliver for middle-class families, while congressional Republicans' agenda is to sell those families out with more tax welfare for rich special interests," White House spokesman Andrew Bates told the Journal.
According to a Tax Foundation article from June, the Biden tax agenda includes higher top tax rates for individual, corporate and capital gains incomes; minimum taxes for individuals, businesses and international corporations; major international taxation changes; making death a tax event; and other measures.
If the plan were enacted, it would reduce the gross domestic product by 0.5%-0.7%, but raise revenue by $4 trillion in the next decade, according to the article.
"Minimum taxes layer additional rules on top of the already complicated foundation of the tax code," Tax Foundation colleague Daniel Bunn said in the article. "Rather than introduce one new minimum tax after another, Congress should have the courage to fundamentally reform and strip away the complexity from our tax code."
One area that could mean a deal between Republicans and Democrats may include leveraging the 2017 business tax cuts passed by the Republican Congress under former President Donald Trump, which are scheduled to end soon.
"We saw the best economy in 50 years," Rep. Jason Smith, R.-Mo., told the Journal. Smith is one of three candidates to lead Republicans on the tax-writing House Ways and Means Committee next year. "Those changes, those policies made a big difference."
Aside from that, both sides may wait until the 2024 presidential election before moving on any tax legislation, according to the Journal.
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