(NewsHill.org)- Last week, President Biden highlighted his upcoming budget which includes a series of tax increases on corporations and the very rich, that he claims will reduce the deficit by $2 trillion over the next decade. But the plan, unlikely to find support in the Republican-led House, amounts to a plan to “soak the rich,” according to a report at Fox Business.
The president’s proposed tax increases include increasing the top income tax bracket from 37 percent to 39.6 percent for those earning over $400,000 a year.
Additionally, the president proposes raising the federal capital gains tax from 20 percent to 39.6 percent for those earning over $1 million.
According to Fox Business, long-term capital gains taxes currently range between zero to 20 percent depending on an individual’s income. To fund Obamacare, wealthier investors are subjected to an additional 3.8 percent tax on both short- and long-term capital gains.
To shore up Medicare, the president is also calling for the 3.8 percent Obamacare tax to increase to 5 percent for those earning over $400,000.
All told, under Biden’s proposed tax plan, the wealthiest Americans could be paying a federal tax rate of as much as 44.6 percent when they sell stocks, property, or other assets.
For US households worth over $100 million, which is about 0.01 percent of the country, the president is also calling for a 25 percent minimum tax rate.
While the White House has not provided many details about the president’s tax proposal, according to Fox Business, the previous billionaire minimum tax proposed by President Biden not only targeted the income of the very rich, but also any unrealized capital gains.
The president is also proposing increasing the 1 percent levy on corporate stock buybacks that was added to the tax code in 2022 as part of the Democrat-passed Inflation Reduction Act. The proposed increase would quadruple the levy to 4 percent while reducing the differentiated tax treatment between dividends and share repurchases, according to the White House.
Additionally, Biden’s budget proposal would also roll back the corporate tax cut from former President Trump’s 2018 tax cuts, lifting the corporate tax rate from 21 percent to 28 percent. Biden also proposes increasing the 10.5 percent tax rate that US companies owe on foreign earnings, nearly doubling it to 21 percent.