WASHINGTON, DC - NOVEMBER 13: U.S. Vice President Joseph Biden (R), joined by Ebola Response Coordinator Ron Klain (L), speaks during a meeting regarding Ebola at the Eisenhower Executive office building November 13, 2014 in Washington, D.C. Vice President Biden met with leaders of faith, humanitarian, and non-governmental organizations that are responding to the Ebola crisis in West Africa. (Photo: Getty)
President Joe Biden is requesting an increase for the Internal Revenue Service’s (IRS) budget of $80 billion to boost enforcement.
Biden’s measure would crackdown on tax evasion, mostly by high-earners, which economists believe could bring in $700 billion in lost revenue. The president explained the key details of his IRS proposal during an address to a joint session of Congress Wednesday.
In addition to the IRS budget increase, Biden’s proposals will also raise the top marginal tax rate from 37% to 39.6% and increase the capital gains tax for people with investments larger than $1 million from 20% to 39.6%. The Affordable Care Act surtax on capital gains would still remain in effect, making the full taxation on investments over $1 million 43.4%.
Another key tax change is the expected rise in corporate income tax from 21% to 28%. This singular change is anticipated to bring in more than $2 trillion over the next 15 years.
Subscribe to our free weekly newsletter!
A week of political news in your in-box.
We find the news you need to know, so you don't have to.
By increasing the IRS’s budget and resources, Biden is making it more difficult for high-earners to avoid paying their taxes. Over the past two decades, the IRS’s budget has been repeatedly slashed, leaving the service understaffed and under-performing. The service’s reduced enforcement has also led to record levels of noncompliance especially among high-earners.
President Donald Trump responded forcefully to a Wall Street Journal article about a message he…
The Supreme Court will consider hearing a case this fall to overturn the landmark decision…
Australian Prime Minister Anthony Albanese announced Monday that Australia will officially recognize a Palestinian state…
President Donald Trump and Russian President Vladimir Putin are set to meet in a summit…
After former Vice President Kamala Harris, who was California's attorney general from 2011 to 2017…
Texas is currently the focus of the national redistricting battle, but Florida may soon join…