Tax battles coming

 Here's more from Bloomberg.

Unlike the $1.9 trillion Covid-19 stimulus act, the next initiative, which is expected to be even bigger, won’t rely just on government debt as a funding source. While it’s been increasingly clear that tax hikes will be a component - Treasury Secretary Janet Yellen has said at least part of the next bill will have to be paid for, and pointed to higher rates - key advisers are now making preparations for a package of measures.

With each tax break and credit having its own lobbying constituency to back it, tinkering with rates is fraught with political risk. That helps explain why Bill Clinton’s signature 1993 overhaul stands out from the modest modifications done since.