American Families Plan

According to Wikipedia, The American Families Plan is a proposal by U.S. President Joe Biden to significantly increase federal spending in areas related to childcare, paid leave, pre-kindergarten, community college and healthcare, funded by increased taxes on high-income Americans. It is the third part of Biden’s three-part “Build Back Better” agenda, with the first being the American Rescue Plan and the second the American Jobs Plan. It was unveiled on April 28, 2021.

It would be at least partially funded by a number of tax hikes on high-income Americans and investors, including restoring the top marginal income tax rate to its pre-2017 level of 39.6% and nearly doubling the capital gains tax for people earning more than $1 million, as well as eliminating a provision in the tax code that reduces capital gains on some inherited assets, like vacation homes. It would also raise revenue by boosting the budget of the Internal Revenue Service by $80 billion (distributed over ten years), which the White House estimates could raise over $700 billion in revenue that otherwise would have been lost to tax evasion.

(We ask the tax professional community and taxpayers to comment on this proposal for increased tax hikes. What do you think?)