US President Joe Biden wants to increase investment income tax on the rich to 43.4%


US President Joe Biden wants to increase investment income tax on the rich to 43.4%

US President Joe Biden will propose an increase in investment income taxes to the richest individuals to pay for his new plan to support American families.

US President Joe Biden

Brian Deese, the head of the White House’s National Economic Council, said President Joe Biden would propose an increase in return on investment taxes with the richest individuals to pay for his new plan of supporting American families.

This week, Mr. Biden is expected to launch a $ 1,800 billion American Family Plan, which includes a child care program, paid family leave and community college tuition waivers, with the expectation will get tax funding for the rich.

Deese said the above-said return on investment tax will only apply to those who make $ 1 million a year, which is only a very small fraction of the 500,000 US taxpayers.

He did not disclose the details of the tax rate, but the US media last week quoted many officials as saying the plan would raise the return on investment tax from 20% to 39.6%.

Plus a 3.8% tax on wealthy investors to pay for Obamacare health insurance, the return on investment tax can be as high as 43.4%, the highest rate ever. since the 1920s, according to the independent research organization Tax Foundation.

But Mr. Deese supports the proposal, believing that it is not only fair but also contributes to reducing tax evasion.

And more importantly, he said, this tax revenue will contribute to direct investment in the next generation and American families, as well as the competitiveness of the economy in the future, and make America possible. promote faster economic growth.

Mr. Biden once said that the rich would have to “do their part” to fund his policy priorities, and that the stance has received the support of a majority of Americans, according to one report. Recent surveys.

His employment plan and infrastructure investment will also be paid for in part from the corporate tax hike.

But many business organizations and Republican lawmakers have voiced opposition to any tax hike, arguing that it could reduce private investment.