President Joe Biden spoke to a joint session of Congress Wednesday to propose a $1.8 trillion “human infrastructure” proposal that comes with a myriad of tax increases, including expanding the death tax.
A breakdown of the tax adjustment from the officially named American Families Plan are as follows:
- Raise the top income-tax rate to 39.6 percent from 37 percent
- Raise the capital gains and dividends tax to 39.6 percent from 20 percent for households making more than $1 million
- Raise the payroll and investment taxes each by 3.8 percent — the top rates on wages and the death tax would reach 43.4 percent from 23.8 percent
- Use the previous 3.8 percent increase to expand over other types of income currently uncovered like active income from S corporations making over $400,000
- Adjust death tax to include unrealized gains as sold and thus taxable with an exemption of $1 million a person
- Limit the ability for real estate to be exchanged without reporting capital-gains income by capping that break at $500,000
The proposed taxes will take an estimated $109 billion from the private sector for use by the Biden administration to fund plans—from universal pre-k to tuition-paid community college–that will expand the role of government when it comes to raising and providing for American families.
Biden will also provide the following loopholes to less wealthy individuals:
Biden delivered his speech without a mask to about 200 people. The number is about 1,400 invitees short of a traditional speech of this magnitude due to House Speaker Nancy Pelosi’s (D-CA) coronavirus protocols that match the Centers for Disease Control and Prevention’s guidance.
CDC mask guidance pic.twitter.com/2yp2uDkkQj
— Wendell Husebø (@WendellHusebo) April 28, 2021