Joe Biden As part of his administration’s radical domestic policy agenda to combat poverty and fund childcare and education programs, it is expected to develop proposals to raise taxes for millionaire investors. ..
Under his American family planning, the president reportedly proposes to raise the capital gains tax rate from the current 20 percent to 39.6 percent for Americans who earn $ 1 million a year from their investment income. Will do.
An additional 3.8% tax on investment income to fund the Affordable Care Act was maintained, and as initially reported, the total increase for some wealthy Americans rose to 43.4%. I will. Bloomberg..
Wealthy investors are currently paying the top rate of 23.8 percent for long-term capital gains.
The proposed rates will affect less than 1 percent of American households. According to a 2018 report, approximately 0.3% of US taxpayers reported over $ 1 million in adjusted total income with capital gains or losses. Internal Revenue Service..
Biden further matched the capital gains tax rate to the wage and salary marginal tax rate (currently 37%) and campaigned to treat these incomes effectively as income.
The President of the United States aims to fill that gap and reduce inequality between working families who will pay higher tax rates than investors.
The American Family Plan tax increase is reportedly used to support paid parental leave and childcare costs, and to make kindergartens and community colleges free for all Americans.
It also includes an extended child tax credit extension, which gives parents with toddlers $ 300 per month or children over the age of $ 250.
Biden and White House officials have repeatedly stated that the government does not intend to raise taxes on people with an annual income of less than $ 400,000, and the capital gains tax system starting at $ 1 million is part of that pledge.
People who earn more than $ 1 million in high-tax states may see higher rates. In New York, state and federal capital gains total more than 52%, and in California more than 56%.
This proposal will not affect the tax rates and incomes of most Americans and will instead address the lack of funding between federal and local agencies for programs essential to Biden’s agenda.
“The president’s conclusion is that those who earn 400,000 shouldn’t raise taxes and won’t raise taxes,” White House spokeswoman Jen Psaki told reporters Friday.
Mr. Biden’s proposal, along with a US rescue program signed by law to combat the economic consequences of the coronavirus pandemic, and a US employment plan focused on the infrastructure still being drafted by Congress, will be of the administration. That’s one-third of the three $ 4 trillion plans.
The proposed $ 2.3 trillion infrastructure package will be covered by a corporate tax hike to 28%.
In March, the president signed a $ 1.9 trillion Covid-19 bailout bill after being passed by Democrats in parliament.
White House officials say his pitch meat for American family planning will be included in his co-speech to Congress set on April 29.
The speech will discuss “increasing and increasing access to health care” through affordable care methods and grants from the US Rescue Program, Pusaki said.
“The president is still making the final decision,” she said of the content of the family plan, adding that individual announcements and outlines of the plan “do not represent everything in its entirety” on his agenda.