A Large-scale set of economic stimulus requires a major financial injection. Therefore, to provide the government with money, US President Joe Biden's $3.5 trillion budget plan was proposed.
As an additional source of income, House Democrats suggested raising the top corporate tax rate to 26.5%. They are also looking at new taxes for cryptocurrency and tobacco. Despite public health campaigns, tobacco is one of the most consumed products. Even a slight tax increase on tobacco, nicotine, and vapor products would contribute about $100 billion to the budget. Fees from cryptocurrency transactions are estimated to raise about $16 billion.
“This meets two core goals the President laid out at the beginning of this process - it does not raise taxes on Americans earning under $400,000 and it repeals the core elements of the Trump tax giveaways for the wealthy and corporations,” White House press secretary Andrew Bates said in a statement.
The money will be used to fund social protection systems, environmental protection programs, and other initiatives over the next decade. Most of the $3.5 trillion is planned to be raised by tax increases on wealthy individuals and large companies. However, it has recently been reported that wealthy Americans can avoid paying taxes by exploiting a loophole in the tax law.
