Biden embarks on second phase of major wealth redistribution plan

After pushing through a massive, $1.9 trillion spending bill last week, President Joe Biden has announced the second phase of his promised wealth distribution plan. A huge tax increase is coming down the pike in order to fund the American Rescue Plan.

By way of a unidentified sources, Bloomberg reported that these increases will be as per Biden's campaign promises, and will create a raise in corporate taxes from 21-28 percent; an income tax increase on those who earn in excess of $400,000 per year; an uptick in the estate tax, which is basically inheritance, or death taxes; capital-gains increases for individuals who earn $1 million or more; and removing preferential tax incentives for LLCs.

Much of what's being done will be a direct reversal of President Trump's tax plans, as has much of the new administration's ethos been entirely focused on rolling back anything Trump signed in to law.

These new taxes would take effect in 2022, Bloomberg reported. Pushback against the tax hikes come from lawmakers who are concerned that increasing taxes on a population of largely unemployed people may not be the best idea. The idea would be that once those whose work was displaced due to the pandemic, or due to regulations that stole jobs, such as the elimination of the Keystone Pipeline project, get back on their feet, the taxes would come into effect.

The Tax Policy Center conducted an independent analysis of Biden's promised tax plan during the campaign, and found that it would take 10 years to raise $2.1 trillion. Undoubtedly, additional massive spending plans will be enacted prior to the realization of the income generated by these new taxes.