Biden's first 100 days: His plans to make the rich pay with higher taxes
Proposed spending plans rely on tax hikes on businesses, wealthy for funding
Americans won't 'buy' into Biden's tax hikes: Rep. Kevin Brady
Rep. Kevin Brady, R-Texas, on President Biden expected to unveil a $1.8T spending plan and tax hikes.
President Biden marks his first 100 days in office Thursday, and he has already outlined a number of proposals to raise taxes on the wealthy and corporations to fund his spending programs.
This week, Biden unveiled his $1.8 trillion American Families Plan, which focuses on education and child care.
He previously announced the American Jobs Plan, a $2 trillion investment that includes a revamp of the nation’s infrastructure as well as various child care proposals.
Both spending plans rely on tax hikes on businesses and the wealthy for funding.
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The American Jobs Plan includes an increase in the corporate tax rate to 28% from 21%, establishing a global minimum tax of 21% and eliminating various perceived loopholes in the corporate tax code.
The second proposal contains a number of increases on individuals and households, notably raising the top personal income tax rate to 39.6% from 37%.
The proposal would increase the capital gains tax rate for individuals earning more than $1 million to 39.6%, bringing it in line with the proposed top individual tax rate. Currently, short-term capital gains are taxed at the same rates as income, but long-term gains are taxed at lower rates.
Additionally, Biden wants to eliminate the stepped-up basis provision, which allows an individual who inherits assets or property from a decedent to sell it immediately and pay no tax. That is because the cost basis has been "stepped up" from the price the deceased owner originally paid for it to its fair-market value on the date it was inherited.
The loophole would be eliminated for gains in excess of $1 million.
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The White House has maintained that taxes will not increase for individuals earning less than $400,000.
Biden has been working with lawmakers on the American Jobs Plan since it was introduced in March. It is not clear whether Democrats plan a bipartisan approach to the legislation or if they may try to move it via the fast-track reconciliation process.