Biden’s Plan to Increase Tax on the Rich to Fund Education and Child Care
New taxes on the rich will be sought by Biden which will include a near the capital gains tax doubling for the high-income earners to pay the next phase in his budget of 4 trillion of reshaping the economy of the Americans. He will also add a proposal on raising the tax rate of the top marginal income from 37% to 39.6% the level that President Donald Trump’s tax overhaul in 2017 had cut to. The proposals align with the promises of Mr Biden’s campaign to increase taxes on the wealthy but not for the households with fewer earnings (less than $400, 000).
The full proposal will be laid out in the coming week by the president which he is referring to as the American Family Plan. It will include the tax credits which are meant to battle poverty as well as the 1.5 dollar trillion in the new spending. Also, the plan to reduce the of child care for families, establish prekindergarten and a community college that is free to all and will develop a national paid leave program, following the ones familiar with the proposal. It has not yet been finalized thus there is a probability of it changing before next week.
Some other things that will be exempted from the plan are the 700 billion effort meant to expand the health coverage or reduction of government spending on prescribed drugs. Officials have instead decided to pursue health care as an initiative on its own, a step that sidesteps a fight between the liberals on Capitol Hill but that risks distressing some of the groups with notable progress.
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