Biden’s NEW Tax Plan is Making HEADLINES And NOT For The Reason You Think

In his annual budget request to Congress, President Biden has proposed a range of tax increases that would primarily affect wealthy Americans and corporations. The tax hikes, which were presented as part of the president’s federal spending blueprint for fiscal 2024, aim to raise the amount of revenue collected from the country’s highest earners.

The proposed changes are significant and include raising the top personal-income tax rate from 37% to 39.6% for individuals earning $400,000 or more. This increase would partially reverse the Trump-era Tax Cuts and Jobs Act. Biden’s plan would also increase the federal capital gains tax rate to 39.6% from 20% for households earning over $1 million.

Currently, the taxes on long-term capital gains, defined as assets held for more than a year, range from 0% to 20% depending on the individual’s income.

Wealthier investors are also subject to an additional 3.8% tax on long- and short-term capital gains used to fund Obama Care. Short-term capital gains on assets sold within a year are typically taxed as ordinary income.

In addition to these changes, the president is proposing a 25% minimum tax rate for households worth more than $100 million, also known as the billionaire minimum tax. While details on this proposal are scarce, it is likely to target the income and unrealized capital gains of the ultra-wealthy.

Biden’s proposal also calls for increasing the 3.8% ObamaCare tax to 5% for those earning at least $400,000 in an attempt to bolster Medicare. Under the plan, the wealthiest taxpayers could face a federal rate as high as 44.6% when selling stocks, properties, and other assets.

Another proposed change includes quadrupling the 1% levy on corporate stock buybacks, which was added to the tax code last year by Democrats as part of the Inflation Reduction Act.

While the proposed tax hikes are unlikely to be supported by the divided Congress, they have received backlash from Republicans who won control of the House in the last election. However, proponents of the changes argue that they will help redistribute wealth and address income inequality in the country.

In summary, President Biden’s proposed tax hikes include increasing personal income tax rates, capital gains tax rates, and the ObamaCare tax. He is also pushing for a minimum tax rate for households worth more than $100 million and a corporate stock buyback tax. While the proposals face opposition, they are seen by some as an attempt to address income inequality in the country.