President Joe Biden is set to unveil a sweeping new “families” proposal during his joint session address Wednesday night, the third such landmark spending proposal of his first 100 days in office.
The “American Families Plan,” senior administration officials say, will cost an estimated $1.8 trillion and comes on the heels of the not-yet-introduced-to-Congress “American Jobs Plan” ($2.25 trillion) and the “American Rescue Plan” ($1.9 trillion) that the president signed into law in March.
Like the AJP, the AFP will also primarily be paid for with tax increases on the wealthiest Americans, with the latest proposal featuring five specific rate changes and loophole closures for the country’s wealthiest households.
- Re-raising the highest income tax bracket to pre-2017 levels (39.6%)
- Raise the capital gains tax for filers making more than $1 million a year to match the income tax rate (39.6%)
- Close the carried interest loophole for hedge fund partners, the special real estate break allowing investors to defer taxes on transfers larger than $500,000, and extend the current restrictions governing excess business losses
- Consistently enforce all filers in the top income bracket pay the same Medicare taxes.