President Joe Biden could be causing the first major federal tax increase since 1993. This would be to pay for a long-term economic program after the relief bill, according to Bloomberg.

This proposed economic plan is sure to shake the feathers of corporate America once they see the 21% tax rate hiked up to 28%.

Democrats may use this economic plan to address "inequities in the tax system itself."

Yahoo finance analysts had something to say about Biden's possible tax hike:

WATCH as "Yahoo Finance’s Rick Newman, Myles Udland and Brian Sozzi discuss Biden’s plans for a tax hike and wealth tax:"



“His whole outlook has always been that Americans believe tax policy needs to be fair, and he has viewed all of his policy options through that lens,” said Sarah Bianchi, head of U.S. public policy at Evercore ISI and a former economic aide to Biden. “That is why the focus is on addressing the unequal treatment between work and wealth.”

The following are among proposals currently planned or under consideration, according to the people, who asked not to be named as the discussions are private:

  • Raising the corporate tax rate to 28% from 21%
  • Paring back tax preferences for so-called pass-through businesses, such as limited-liability companies or partnerships
  • Raising the income tax rate on individuals earning more than $400,000
  • Expanding the estate tax’s reach
  • A higher capital-gains tax rate for individuals earning at least $1 million annually. (Biden on the campaign trail proposed applying income-tax rates, which would be higher)

Tax the rich seems to be the motto on this one.