Biden on tax hike plan: 'I'm a capitalist' but wealthy can 'no longer hide what they're making'

Biden's budget plan would greatly expand the IRS by approximately 87,000 agents
U.S. President Joe Biden delivers remarks during an event on the South Lawn of the White House August 5, 2021 in Washington, DC.
By Nicholas Ballasy

President Biden on Thursday make a case for congressional Democrats' tax increase plan to pay for his proposed $3.5 trillion spending package, saying he's "a capitalist" but the wealthy aren't paying their fair share in taxes.

"I'm not out to punish anyone. I'm a capitalist," Biden said at the White House. "All I'm asking is you pay your fair share, pay your fair share, just like middle class folks do."

Biden said his economic plans, which are part of the Democrats' $3.5 trillion reconciliation bill, won't "punish" wealthy Americans but it would expand the IRS to ensure they "can no longer hide what they're making" and pay what they owe in taxes.

Biden said the "super-wealthy" are often not employees so the IRS can't catch if they aren't reporting all of their income.

"The IRS can't see what they make and can't tell if they're cheating," he said. 

His proposal is estimated to add about 87,000 IRS agents, which would cost about $80 billion. Biden also wants to require banks to report transactions of $600 or more to the IRS, up from the current $10,000 threshold.

To justify spending $3.5 trillion, Biden argued that the GOP's $1.5 trillion across-the-board tax cuts from 2017 increased the deficit.