US President Biden may announce a series of tax increases for the wealthy in the United States as early as next week, including nearly doubling the capital gains tax for people with incomes of more than $1 million, thereby funding the massive increase in parenting and education spending. .
The Financial Times reported on the 23rd that this round of tax increases will reverse some of the tax cuts passed by former President Trump in 2017. It is expected that tax increases will be proposed for individuals with an annual income of more than US$400,000. These include raising the maximum income tax rate from 37% to 39.6%, and taxing the capital gains and dividend income of Americans with an annual income of more than $1 million at the ordinary income tax rate. In addition, together with the additional tax imposed on the investment income of the rich during the Obamacare period, these measures will bring the total capital gains tax rate for the wealthiest people in the United States to 43.4%.
The Financial Times analyzed that Biden plans to use the income from tax increases to fund the "American Families Plan" (American Families Plan) proposed by the White House. The plan will extend the child subsidy to 2025 and provide additional funding for universal preschool education and community colleges.
People familiar with the matter said that Biden may announce this "American Family Plan" with a scale of more than $1 trillion at the joint meeting of the United States Congress as early as next week.
The "American Family Plan" will be the third large-scale economic stimulus plan proposed by Biden since he took office. Earlier, he promulgated a $1.9 trillion fiscal stimulus plan, and then proposed a $2 trillion infrastructure construction bill, which has not yet been approved by Congress.