ICYMI: New Independent Analysis: "President's Proposed Income Tax Rate Hike and Capital Gains Change Would Affect Less than 1 Percent of Taxpayers"
A new report released by the Institute on Taxation and Economic Policy (ITEP) finds that the tax reform proposals that finance the critical investments in President Biden's American Families Plan would affect less than one percent of U.S. taxpayers even as they create a fairer tax system and help fund transformational investments in the economic well-being of the American people.
The Families Plan will cut $800 billion in taxes for lower- and middle-class Americans, and it would make critical investments to create greater financial security for working families, including providing child care assistance and an additional four years of education, and by creating a national comprehensive paid family and medical leave program.
Combined with the Jobs Plan, the Families Plan will be fully paid for over 15 years. The Jobs Plan and Families Plan will produce long-term deficit reduction in the years following by asking large corporations and the wealthiest Americans to finally pay their fair share.
The Families Plan will raise the top individual income tax rate to its pre-2017 level, applying only to those within the top one percent. The Families Plan will also tax the investment earnings of taxpayers earning more than $1 million – only 0.3% of filers – at the same rate those taxpayers pay on their wages. This will put an end to the phenomena of wealthy investors paying a lower marginal tax rate than their secretaries. And under President Biden's plan, no one making under $400,000 will see a tax increase.
Today's report confirms that President Biden's plan would only affect less than the top 1% of Americans – a group that saw their net worth increase by $4 trillion during the pandemic. A raft of recent polling confirms that this plan has the overwhelming support of the American people.
Institute on Taxation and Economic Policy: President's Proposed Income Tax Rate Hike and Capital Gains Change Would Affect Less than 1 Percent of Taxpayers
President Biden's American Families Plan includes revenue-raising proposals that would affect only very high-income taxpayers. The two most prominent of these proposals would restore the top personal income tax rate to 39.6 percent and eliminate tax breaks related to capital gains for millionaires. As this report explains, these proposals would affect less than 1 percent of taxpayers and would be confined almost exclusively to the richest 1 percent of Americans. The plan includes other tax increases that would also target the very well-off and would make our tax system fairer. It would raise additional revenue by more effectively enforcing tax laws already on the books.
A month ago, the President announced his American Jobs Plan, which would use corporate tax increases to finance investments in physical infrastructure. In contrast, his American Families Plan (AFP) would use personal income tax increases on very well-off individuals to finance investments in people—in childcare, education, higher education, reducing child poverty and other related measures.
Read full report HERE.
Joseph R. Biden, ICYMI: New Independent Analysis: "President's Proposed Income Tax Rate Hike and Capital Gains Change Would Affect Less than 1 Percent of Taxpayers" Online by Gerhard Peters and John T. Woolley, The American Presidency Project https://www.presidency.ucsb.edu/node/349753