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Tuesday, June 15, 2021

Biden set to raise taxes on rich to fund child care and education

Considering early versions of the two-step agenda revealed earlier last month by The New York Times, according to administration estimates, the plan’s spending and tax credits would be about $ 1.5 trillion.

To offset that cost, Mr. Biden would propose several tax hikes included in his campaign’s “Build Back Better” agenda. It begins with raising the top marginal income tax rate from 37 percent to 39.6 percent, in 2017 by President Donald J. Was cut off by Trump’s tax overhaul. Mr. Biden would also raise taxes on capital gains – sales income stocks or boat-like assets – for people earning more than $ 1 million, effectively increasing the rate of payment on that income to 20 percent to 39.6 percent.

The President will also propose to abolish a provision of the tax code that reduces taxes for property or property that, like art or property, is sold by inheritance, which has gained value over time. And he would increase revenue by increasing enforcement in the Internal Revenue Service to bring in more money from wealthier Americans who evade taxes.

Administration officials were debating other possible tax hikes that could be included in this week’s plan, such as reducing deductions for wealthy taxpayers or raising property taxes on wealthy heirs.

All of the tax provisions will be accompanied by Mr. Biden’s campaign promising not to raise taxes on individuals or families with incomes below $ 400,000 per year.

Previous versions of the Family Plan, circulated inside the White House, also called for increasing revenue by implementing measures to reduce the price of medicines purchased using government health care programs. That money would be funded for the continued expansion of health coverage subsidies for insurance purchased through the Affordable Care Act, which was temporarily expanded by an economic aid bill earlier this year. California speaker Nancy Pelosi pushed for that continued expansion.

Mr. Biden’s team was under pressure from Senator Bernie Sanders, independent of Vermont and chairman of the budget committee, to instead focus his health care efforts on a plan to expand Medicare. Mr. Sanders has expanded the administration to reduce Medicare’s eligibility age and to cover vision, dental and hearing services.

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