The nonpartisan Urban-Brookings Tax Policy Center discovered that the top 0.1 percent of Americans – those who make $3.6 million or more – would pay an added $1.56 million each in federal taxes each year on top of the taxes they already pay.
This addition would cause the greatest earners in the U.S. to lose 16.8 percent in after-tax income.
If Biden’s hikes are passed by Congress, according to the analysis, those in the top 1 percent would pay an added $213,530 in taxes while those in the top 4 percent would pay $5,090 more per year.
The president has vowed that middle and lower-class Americans won’t see their taxes rise with his massive spending proposals.
Biden’s ‘Build Back Better’ economic plan involves an infrastructure proposal and an overhaul of social welfare programs and climate change actions.
While a collection of Republicans reached an infrastructure agreement with Biden last month, the two sides are much further away from reaching any sort of agreement on the ‘Families Plan’ part of Biden’s agenda.
Partners in the infrastructure accommodation praise the plan because they say it won’t be funded by raising taxes.
On the other hand, Republicans are not sold on the ‘human’ infrastructure part of Biden’s economic agenda because it covers environmental initiatives and expanding government-funded social programs.
These programs include yet are not limited to, giving free community college, setting a universal pre-kindergarten nationwide, increasing government-funded care for the elderly and disabled and giving children tax credits to low and middle-income families.
If the plan passes Congress, possibly with no Republican support, the child tax credit from Biden’s American Rescue Plan, would get extended through 2025 and give low and middle income parents $3,000 for each child six through 17-years-old and $3,6000 for children under six.
The benefit would begin to decline from that amount for individuals earning over $75,000 and married couples earning $150,000 or more.
Biden wants these social welfare programs to be paid for by reversing Donald Trump’s 2017 tax cuts, which would raise the top capital gains tax for those earning more than $1 million from 20 percent to 39.6 percent.
It would further get funded by bringing back the top individual income tax rate and increasing it by nearly 3 percent for families with a combined income of $509,3000 and individuals earning $452,700.