Biden to propose raising top income and capital gains tax rates to 39.6% in budget

PResident Joe Biden We will be announcing a number of tax The release of Thursday’s budget change proposal that targets high income earners is expected to occur despite it not being possible for the measure to become law in the Republican House.

Biden will publish his annual budget A plan was announced Thursday that would reduce the federal budget deficit by some $2 trillion over the next decade — a reduction that would still leave deficits high and rising in a threat to fiscal stability. According to documents provided to The Associated Press, Biden will announce tax increases for those who earn more than $400,000 to pay the president’s budget priorities. Washington Examiner By a White House official.

BIDEN FACES IMPOSSIBLE BUDGET MATH EVEN WITH BIG TAX HIKES

Impôts on income

Biden will propose raising the top marginal tax rate on individuals making over $400,000 per year to 39.6% — the rate it was before the Trump tax cuts, up from the current 37% rate. The administration has proposed similar increases for married couples earning over $450,000 per year in the past.

Capital gains

Similar to past Biden budgets, the President’s Budget would almost double the capital gains Tax.

It would increase the tax rate on wealthy people earning more than $1million from 20% up to 39.6%. A federal tax rate up to 44.6% would apply to individuals earning more than $1 million. This is in addition to an Obamacare surtax that investors earn.

Corporation taxes

Biden wants to increase the corporate tax rate to 21% from 35% (though the 2017 tax cuts have lowered it to 35%).

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