Sign up for our daily briefing

Make your busy days simpler with Axios AM/PM. Catch up on what's new and why it matters in just 5 minutes.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Catch up on the day's biggest business stories

Subscribe to Axios Closer for insights into the day’s business news and trends and why they matter

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Stay on top of the latest market trends

Subscribe to Axios Markets for the latest market trends and economic insights. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Sports news worthy of your time

Binge on the stats and stories that drive the sports world with Axios Sports. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Tech news worthy of your time

Get our smart take on technology from the Valley and D.C. with Axios Login. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Get the inside stories

Get an insider's guide to the new White House with Axios Sneak Peek. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Denver news?

Get a daily digest of the most important stories affecting your hometown with Axios Denver

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Des Moines news?

Get a daily digest of the most important stories affecting your hometown with Axios Des Moines

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Twin Cities news?

Get a daily digest of the most important stories affecting your hometown with Axios Twin Cities

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Tampa Bay news?

Get a daily digest of the most important stories affecting your hometown with Axios Tampa Bay

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Charlotte news?

Get a daily digest of the most important stories affecting your hometown with Axios Charlotte

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Sign up for Axios NW Arkansas

Stay up-to-date on the most important and interesting stories affecting NW Arkansas, authored by local reporters

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

(Photo: Stefani Reynolds/CNP/Bloomberg via Getty Images)

President Biden is preparing to go to the mat for four tax increases worth about $1.8 trillion to help pay for his infrastructure and social safety net plans, advisers tell Axios.

Driving the news: Biden will outline an array of tax proposals beginning on Wednesday — an opening bid ahead of months-long negotiations mostly within the Democratic Party — but these are his priorities.

By the numbers: The biggest-ticket item would raise the corporate rate from 21% to 28%. That's worth $730 billion over 10 years, according to the Tax Policy Center.

The other three would:

  • Impose a global minimum tax on profits from foreign subsidiaries: $550 billion.
  • Tax capital gains as regular income for the wealthy and tax unrealized capital gains at death: $370 billion.
  • Return the top individual rate for those making more than $400,000 to the pre-Trump rate of 39.6%: $110 billion.

The intrigue: During presidential campaigns, revenue estimates are more art than a science and estimates vary widely. But once proposals are sent to Congress, the numbers are whatever the Joint Committee on Taxation says they are.

  • Republicans are unlikely to raise taxes in the middle of a pandemic. That's why Biden may be forced to pursue some plans via budget reconciliation, which requires only a simple majority in the Senate, not filibuster-proof numbers.

Between the lines: Democrats close to the White House don’t expect Biden to fight as hard for other expected proposals, including one that could raise some $740 billion by imposing new Social Security taxes on the wealthy.

  • His campaign plan to impose a 28% minimum rate on the wealthy, which would raise $220 billion, is unlikely to cross the finish line.
  • And making it harder for small businesses to claim deductions, which would bring in $140 billion, will likely encounter serious roadblocks.
  • Changing the ways estates are taxed, which would raise $220 billion, may not make it into the final legislation.

The big picture: Biden plans to unveil his infrastructure plan in Pittsburgh on Wednesday, with spending plans for the so-called caregiver economy to be unveiled in a couple of weeks.

  • Inside the White House, officials like to say Biden is giving two speeches for one holistic agenda. They are indifferent about how many packages it's divided into to get through Congress.
  • But White House press secretary Jen Psaki set a marker on Monday when she promised that Biden would pay for every dollar of new infrastructure spending with a corresponding tax increase. “The president has a plan to fix our infrastructure and a plan to pay for it,” she said, later clarifying that she meant it would be paid for "over time."

Be smart: Biden’s approach to taxes is both ideological and political. He views increasing taxes on corporations and the wealthy as a fundamental matter of fairness and a way to reduce income inequality.

  • But moderate Democrats could revolt, and Senate Majority Leader Chuck Schumer may demand Biden cut taxes by removing the limits on state and local deductions.

The bottom line: Officials expect most of the haggling to happen on the corporate rate, both on the top percent and the global minimum for big multinationals.

  • Repealing the Trump tax cuts on the wealthy is a much easier lift. But it raises, at most, around $150 billion — not nearly enough to pay for the massive infrastructure project that "Amtrak Joe" is contemplating.

Go deeper

Scoop: Moderate Democrats buck Biden tax hikes

Photo: Demetrius Freeman/The Washington Post via Getty Images

President Biden's plan to pay for his coming infrastructure package with big tax hikes already is meeting some resistance from moderate Democrats, a stumbling block for his progressive ambitions.

Why it matters: If this discomfort turns to outright opposition in the House and Senate, Biden will face a complicated path to cover more than $3 trillion he is expected to seek, in multiple proposals, for infrastructure as well as social welfare.

Top Republicans form new group to fight Biden tax hikes

Marc Short at the White House in March 2020. (Photo: Stefani Reynolds/Bloomberg via Getty Images)

Top GOP operatives have formed a group to fight President Biden's plans to raise taxes to pay for his expected $3 trillion-plus infrastructure package.

Why it matters: The Coalition to Protect American Workers is the first major conservative group formed exclusively to block Biden's tax agenda. Its leaders include Marc Short, who was former Vice President Pence's chief of staff.

Mar 28, 2021 - Energy & Environment

Progressives try to sell climate spending with jobs pitch

John Podesta. Photo: Drew Angerer/Getty Images

Progressives are trying to sell President Biden's infrastructure initiative with new cable TV ads arguing clean energy projects will immediately create thousands of jobs.

Why it matters: White House press secretary Jen Psaki suggested Sunday that Biden will split his potential $3 trillion package in two — investments in infrastructure, followed by billions more for the “caregiving economy.” The first political fight may be over what qualifies as infrastructure.