Biden Pushes 4000 Trillion Won Tax Increase Focused on 'Wealth Tax'

President Joe Biden [Photo by Yonhap News]

[Asia Economy Reporter Changhwan Lee] The Joe Biden administration in the United States has announced a tax increase plan amounting to $3.6 trillion (approximately 4,000 trillion KRW) over the next 10 years.

According to local media on the 30th, the U.S. Treasury Department announced on the 28th (local time) a tax reform plan that includes raising corporate and income taxes in the future.

Biden's tax increase focuses on large corporations and high-income earners. According to the tax reform plan, the top corporate tax rate for large companies will be raised from the current 21% to 28%.

This raises the rate to a middle level from the 21% rate that the Donald Trump administration had lowered from 35%. An increase in tax revenue of $2 trillion is expected over the next 10 years.

A tax increase of $700 billion over 10 years on high-income earners is also planned. The tax rate for individuals earning over $450,000 and married couples earning over $500,000 annually will rise from 37% to 39.6%.

Additionally, the capital gains tax on individuals with capital gains exceeding $1 million on assets held for more than one year will be significantly increased from the current 20% to 39.6%.

Furthermore, measures to increase tax revenue by $800 billion through improved tax compliance and $64 billion by closing tax loopholes will also be pursued.

The additional $3.6 trillion in tax revenue secured in this way will be used as funding for the $4 trillion in spending proposed by President Biden for infrastructure investment and expansion of education and welfare, including the "American Jobs Plan" ($2.25 trillion) and the "American Families Plan" ($1.8 trillion).

This content was produced with the assistance of AI translation services.