That’s according to a new analysis published this week by the Institute on Taxation and Economic Policy, which found that the wealthiest 1% of Americans would pay an extra $159,010 in taxes each year if Congress passes the Biden administration’s newest $1.8 trillion economic initiative.
By comparison, the top 4th percentile of households – or those that earn between $276,200 to $681,600 – would see a tax increase of just $2,960, according to the non-partisan think tank. Americans earning less than $276,200 would likely not see their taxes rise under Biden’s proposal.
Under the American Families Plan, released Wednesday, the top capital gains tax would climb to 39.6% from 20% for Americans earning more than $1 million, while the top individual income tax rate would increase to 39.6% from 37% for families with joint taxable income of about $509,300 and individuals earning more than $452,700. The measure would also eliminate the so-called stepped-up basis, which could substantially increase taxes at death for affluent Americans.
“We’re talking about a tax change that would affect the three-tenths of one percent, the top sliver of households,” Brian Deese, Biden’s top economic adviser, told reporters on Monday. “The principle here is to equalize the treatment of ordinary income and capital gain.”
THIS IS MY SHOCKED FACE: Biden’s STEP Act will tax farmers, small business owners hardest.
President Joe Biden, who is promoting an effective tax increase on many middle-class Americans to pay back the unions that helped fund his campaign, is also pushing the STEP Act, a tax increase that will hit family farmers and other small business owners.
One of the ways Biden proposes to pay for the nearly $6 trillion in spending he has proposed within his first 100 days is raising the capital gains tax from 20 percent to the top marginal income tax rate of 39.6 percent, and eliminating the “stepped-up basis at death.”
The Biden administration says this would “eliminate the loophole that allows the wealthiest Americans to entirely escape tax on their wealth by passing it down to heirs. Today, our tax laws allow these accumulated gains to be passed down across generations untaxed, exacerbating inequality. The President’s plan will close this loophole, ending the practice of ‘stepping up the basis for gains in excess of $1 million ($2.5 million per couple when combined with existing real estate exemptions) and making sure the gains are taxed if the property is not donated to charity.”
In brief, the stepped-up basis means that an heir who sells property (or investments) is taxed based on the current market value, rather than what the property was worth when it was purchased.
Currently, if a business was purchased for $500,000 but was worth $1 million at the time of the owner’s death, and then his heirs sold it, they would be taxed based on anything over $1 million on the sale. Biden’s proposal would mean that the business owner’s heirs would be taxed based on the original $500,000 purchase price.
It’s almost like the Junta’s intent in everything they do is to create a fascistic corporatist state, designed to serve international socialist paymasters and oppress the populace of the formerly free United States of America. Wow! Who could think that people who locked up the country to take down the economy, on the excuse of an unusually severe cold virus, and — when that failed to defeat their “enemy” — then stole the election in front of the eyes of the world would have bad intent! I’m so shocked. So profoundly shocked. Aren’t you shocked?