Read on Twitter
The American Families Plan will total $1.8T in spending & tax cuts:
$1T spending --> $200B universal preschool, $109B free community college, $225B national paid leave
$800B tax cuts --> permanent expansion of EITC & dependent care credit. CTC to 2025.
$1T spending --> $200B universal preschool, $109B free community college, $225B national paid leave
$800B tax cuts --> permanent expansion of EITC & dependent care credit. CTC to 2025.
WH says it can pay for this in 15 years through higher taxes on the wealthy:
* Restore top rate to 39.6%
* Tax cap gains at same rate for households earning $1m+
* End stepped-up basis for gains over $1M
* Eliminate like-kind exchange for real estate
* Increase IRS enforcement
* Restore top rate to 39.6%
* Tax cap gains at same rate for households earning $1m+
* End stepped-up basis for gains over $1M
* Eliminate like-kind exchange for real estate
* Increase IRS enforcement
When would tax hikes take effect? WH didn't take retroactivity off the table:
"We will work with Congress to set an effective date that ensures that these highest income Americans can’t game the tax rate changes by shifting the date of their transactions."
"We will work with Congress to set an effective date that ensures that these highest income Americans can’t game the tax rate changes by shifting the date of their transactions."
And for anyone still following this thread, WH clarifies that the new cap gains rate would kick in at $1M of total income (gains + labor income)
