AMERICAN FAMILIES PLAN
WHAT AMERICANS WOULD GET
❚ Universal pre-kindergarten: Biden said on the campaign trail that he would provide federally funded universal pre-kindergarten for all three- and four-yearolds.
❚ Paid family leave: Biden supports legislation to provide 12 weeks of paid leave for all workers for their own or a family member’s serious health condition.
❚ Free community college: Biden has supported providing two years of community college or other high-quality training program debt-free for individuals looking to learn or improve their skills to keep up with the changing nature of work.
❚ Extended child tax credits: Biden is seeking to extend the expanded child tax credit, which is essentially a monthly payment from the government for most families, through 2025. The credit was created on a temporary basis by a Us$1.9-trillion coronavirus relief package passed in March.
HOW THE RICHEST AMERICANS WOULD PAY FOR IT
❚ Top marginal tax: Biden will propose raising the top marginal income tax rate to 39.6% from 37%. For tax year 2021, the top tax rate is 37% for the richest Americans — individual taxpayers with incomes greater than US$523,600 and married couples filing jointly with over US$628,300.
❚ Capital gains: Biden would nearly double taxes on capital gains, to 39.6% for people earning more than US$1 million. On the campaign trail, Biden proposed taxing capital gains and dividends as ordinary income for taxpayers earning over $1 million.
❚ Inheritance: Biden could eliminate a provision of the tax code that reduces taxes for wealthy heirs who sell assets.
❚ Enforcement: He would raise revenue by increasing enforcement at the IRS.