Biden Administration Outlines Principles for Upcoming Battle Over Tax Policy Extension

As the 2017 Republican tax cuts approach their expiration date in 2025, the White House and Congress are preparing for a significant battle regarding tax policy. On Friday, Lael Brainard, Director of the White House National Economic Council, outlined the Biden administration’s principles for the upcoming fight. According to a report by the Congressional Budget Office, extending the 2017 tax cuts will cost over $4 trillion within a decade. Brainard stated that the Biden administration intends to decrease deficits by increasing taxes on corporations and affluent individuals while preserving its pledge not to raise taxes on households earning less than $400,000 annually. She criticized the previous Republican tax legislation, stating that it led to a less equitable tax system, negatively impacted fiscal health, and failed to deliver the promised economic advantages. Brainard presented five key principles for the administration’s tax policy in a possible second term: (1) Promote a tax system that awards work rather than wealth, (2) Increase revenues and entirely repay any tax cuts that are prolonged, (3) Require more from businesses, (4) Improve IRS enforcement against wealthy tax evaders, and (5) Avoid an international tax competition. The disagreement over probable significant changes in tax policy in 2025 is growing heated as the Biden administration outlines its strategy to boost taxes on wealthy households and corporations while keeping and sometimes improving tax breaks for all others.