Biden plans country's first major tax hike since 1993 to pay for next economic initiative, report

President Biden is planning the country's first major tax increase since 1993 – to help pay for his next economic initiative, after last week signing into law a $1.9 trillion COVID stimulus package, according to a news report.

The next initiative is expected to be bigger than COVID package, sources told Bloomberg, which first reported the story.

President Joe Biden is planning the first major federal tax hike since 1993 to help pay for the long-term economic program designed as a follow-up to his pandemic-relief bill, according to people familiar with the matter.

Unlike the Covid package, the next initiative won’t rely on government debt as its single funding source.

Treasury Secretary Janet Yellen has already indicated that at least part of the next bill will have to be paid for and has pointed to higher rates, Bloomberg also reports.

Analysts say the tax plan could raise $2 trillion to $4 trillion over the next decade. The plan will purportedly raise taxes on Americans making over $400,000 annually, increase the corporate tax rates from 21 percent to 28 percent, expanding the estate tax and create a higher capital gains tax.