Sources: Bloomberg Article – “Biden unveils massive family aid plan funded by taxing wealth.”
Accounting Today – “Biden calls for raising taxes on capital gains and wealthy.”
$1.8 trillion bill - $1 trillion on spending & $800 million on tax cuts and credits
Spending:
- Pre-K and community college becomes free NATIONALLY
- Direct support to families for childcare
- Finance Teacher training
- The national family paid leave program
- $80 million in funding to IRS to conduct tax audits
Tax Cuts & Credits:
- Permanent Earned Income Tax Credit to childless adults under an income limitation
- Expansion of child tax credit to 2025
End Goal: Tax Wealthy More
- Corporate Tax Rate increases to 35%
- Individual Tax Rate increases back to 39.6%
- Capital Gains Tax Rate increases to 39.6% with over $1 million in earnings
“I will not impose any tax increases on people making less than $400,000 a year.”