Home » Economy » Biden's planned tax hikes could be 'devastating' for Democrats in 2022, experts say
Biden's planned tax hikes could be 'devastating' for Democrats in 2022, experts say
Kudlow: Biden’s infrastructure plan is ‘big political mistake’
FOX Business’ Larry Kudlow weighs in on the upcoming infrastructure, tax and spending plans under President Biden.
President Biden is planning the first major federal tax hike in decades to fund his sweeping, multitrillion-dollar infrastructure bill, a policy move that could extinguish any hope Democrats have of maintaining their governing trifecta in the 2022 midterm elections, according to some experts.
Biden unveiled the first part of his infrastructure package — dubbed the American Jobs Plan — on Wednesday, laying out a $2.25 trillion, eight-year spending plan funded by raising the corporate tax rate to 28% from 21% and increasing the global minimum tax on U.S. corporations to 21% from 13%, along with several other changes.
WHAT'S IN BIDEN'S $2.2T INFRASTRUCTURE AND TAX PROPOSAL?
The president is also planning a second major proposal, which could cost upward of $1 trillion, that he will unveil in April. That measure, which is expected to focus on domestic issues like expanding health care, extending the child tax credit and offering paid family leave, will likely be funded by tax increases on wealthy Americans.
Combined, the Biden administration could propose as much as $3 trillion in tax increases and $4 trillion in new spending, according to The Washington Post.
"Politically, this could be devastating," Doug Schoen, a Democratic strategist who has served as an adviser to President Bill Clinton and Mike Bloomberg, told FOX Business. "Bill Clinton in 1994 was the last president to propose the quote 'biggest tax increase' in history. It resulted in a historic loss in the Senate."
PROGRESSIVES PRESSURE BIDEN TO PASS $10T GREEN INFRASTRUCTURE, CLIMATE JUSTICE BILL
Given Democrats' razor-thin margins in both the House and the Senate, the party can stand to lose just a handful of seats, or risk ceding control to Republicans. According to the Cook Political Report’s initial analysis of 2022 Senate elections, six seats (two of which are held by Democrats, and three of which are open) look competitive.