The steadiness of the numbers belie the fact that some Biden administration officials, including Ms. Yellen, have acknowledged as recently as Thursday that there would be high rates of inflation throughout the rest of the year.
The inflation benchmark in the budget will be a key one to watch as Republicans, including former President Donald J. Trump, have seized on the rising prices to argue that Mr. Biden has been bad for consumers.
Corporations will pick up the tab.
To help pay for its proposals, the Biden administration is preparing an overhaul of the tax code, the brunt of which will be felt by large corporations.
The budget details the White House’s plan for a $2 trillion corporate tax hike, which would be achieved by raising the corporate income tax rate to 28 percent from 21 percent and imposing tougher measures to curb offshoring. The proposals for the corporate tax code reverse or change many of the provisions in the 2017 Tax Cuts and Jobs Act, which was Mr. Trump’s signature legislative achievement.
One key provision in that law that is not addressed, however, is the fate of the individual income tax cuts for low- and middle-income taxpayers that are set to expire before 2026. Mr. Biden’s budget proposal assumes that they will, in fact, sunset.
That puts the onus on the administration to propose a plan for additional tax cuts in order to keep the president’s pledge that no taxpayer who earns less than $400,000 will have their taxes go up.
The Republicans on the House Ways and Means Committee, which led the drafting of the 2017 law, took note of the omission.
Source Article from https://www.nytimes.com/2021/05/27/business/economy/biden-budget.html
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