Top Biden aide highlights upcoming tax showdown with GOP over 2017 cuts that are due to expire
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Lael Brainard, director of the White House National Economic Council, will deliver remarks at the Brookings Institution on Friday highlighting the upcoming tax showdown between the Biden administration and the GOP over the 2017 income tax cuts. Many of the tax cuts are set to expire after next year, and if extended, another $4.6 trillion would be added to the national debt over the next decade. Brainard argues that the 2017 tax cuts failed to deliver the promised growth and let wealthy households pay lower rates than middle-class earners. Trump opposes tax hikes, while Biden wants to extend middle-class tax cuts and raise taxes on profitable companies and the wealthy. The Biden administration aims to raise awareness of tax fairness and emphasizes its commitment to not raise taxes on anyone making less than $400,000. The expiration of Trump's tax package next year will put tax fairness front and center. Trump argues that the expiration of his tax cuts would cause mass layoffs and permanently cripple the economy, while Biden believes growth will come from spending by financially secure middle-class households. Trump's 2017 overhaul cut the corporate tax rate to 21% and temporarily reduced income taxes for most households. Biden's tax plan assumes all of Trump's tax cuts will expire, but it's unclear how he would lower the deficit as much as advertised in his budget proposal. Republicans may face challenges in continuing the tax cuts without worsening the government's finances and may need to consider spending cuts to address the higher debt loads. Higher debt loads could lead to higher interest rates and more expensive mortgages and auto loans.

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https://abcnews.go.com/US/wireStory/top-biden-aide-highlights-upcoming-tax-showdown-gop-110098433