Some Democrats on Capitol Hill are wary of President Joe Biden’s pitch to nearly double the capital gains tax for the wealthy, meaning that the proposed hike will almost certainly land at a lower level.
Biden wants to pay for his American Families Plan, a $1.8 trillion package focused on childcare and families, by increasing the top individual income tax rate to the pre-2017 level of 39.6% and taxing capital gains for households making more than $1 million as ordinary income.
While Republicans are balking at the idea, it will also be a tough sell within Biden’s own party, as Democrats hold a wire-thin majority in the Senate, and one vote against the plan could completely derail the proposal. The scale of the tax increase, if passed as is, would also be historic.
Erica York, an economist with the Tax Foundation, a nonpartisan think tank that generally prefers lower taxes, told the Washington Examiner