President Joe Biden is preparing to outline the next step of his economic agenda during a joint session to Congress next week and his proposal to pay for it is expected to include new taxes on the wealthiest Americans.
Multiple sources familiar with the discussions underway tell CNN that Biden’s forthcoming American Family Plan could nearly double the capital gains tax for people who make more than $1 million a year by taxing it like wages and salaries, and raise the top marginal income tax rate from 37% to 39.6% for households making $400,000 or more in income.
The proposal would make good on Biden’s campaign trail promise to raise taxes on the wealthiest Americans and is his way of funding the American Family Plan, which is currently expected to clock in around $1 trillion. The sweeping plan will be centered around child care, paid family leave, education funding like free community college tuition and other domestic priorities. Details of what the White House is billing as “human infrastructure” are slated to be released Monday and Tuesday.
The proposal is still coming together, with lowering prescription drug prices being a key sticking point. As of now, this is not part of the plan, a White House official said, because of deep disagreement among Democratic lawmakers.
White House officials stressed that the details of the plan haven’t been finalized and could change before Biden introduces it next week. He is continuing to hold meetings with policy aides to finalize the details.
Biden and other top White House officials like Vice President Kamala Harris are expected to hit the road to sell the plan next Thursday or Friday.