On Wednesday, March 17th, US President Joe Biden said that anyone earning more than $400000 a year would face tax increases.

Earlier, the White House economic adviser said on the 16th that President Joe Biden's tax reform plan would raise taxes on businesses and the rich. If the tax reform is passed, it will be the first major federal tax increase plan since 1993.

White House National Economic Council Deputy Director Bharat Ramamurti said in an interview on the 16th that Biden firmly believes that the largest companies and people with high incomes in the past few decades should pay more taxes.

Ramamurti said the White House wants to work with Congress on tax reform, with the goal of ensuring that the middle class does not pay more than their share, and that the richest, including those who have made a lot of money in the past few years, and those who were still making money during last year's COVID-19 crisis, pay more.

Increase taxes and invest in infrastructure

Just after the $1.9 trillion epidemic relief bill has been settled, US President Joe Biden has begun to prepare a new round of economic recovery package.

According to previous reports, the core of the new bill may be the largest infrastructure project in the United States since Roosevelt's New deal, which could amount to trillions of dollars and is expected to be far more complex than "1.9 trillion."

But where does such a large sum of money come from in the context of high government debt in the United States?

According to Bloomberg, citing people familiar with the matter,Biden is planning to raise federal taxes sharply for the first time since 1993 to finance the plan.

The White House is expected to propose a series of tax increases that echo Biden's campaign proposals, including several measures currently planned or under consideration, according to four people familiar with the matter.

1. Increase corporate tax from 21% to 28%

2. Reduce the tax benefits for limited liability companies, partnerships and other companies (pass-through businesses)

3. Raise the personal income tax rate for people earning more than $400000 a year

4. Expand the scope of estate tax

5. Higher capital gains tax is levied on individuals earning at least $1 million a year.

In addition, the Biden administration is also likely to repeal the parts of the Trump administration's 2017 tax reform that benefit businesses and the rich, and there is room for further changes.

It is worth noting thatAlthough the Biden administration has previously rejected Democratic Senator Warren's proposal for a "direct wealth tax", the rich are still likely to be the main focus of the Biden tax reform.

On a specific scale, the tax plan proposed by Biden during the election will raise $2.1 trillion for the United States within a decade, according to the Center for tax Policy, a US think-tank. Now, Sarah Bianchi, a former economic adviser to Biden, believes that congressional Democrats will agree to a tax of about $500 billion, which is much smaller than before.