Taxes may soon be going up for the wealthy.
President Joe Biden aims to fund expanded education, child care, paid leave and other reforms by collecting more tax revenue from Americans who make more than $400,000 a year.
He would do so by raising the top income and capital gains tax rates, changing the taxation of wealthy estates, closing so-called tax loopholes and focusing audits of the rich to prevent tax evasion.
All told, the American Families Plan would raise $1.5 trillion over a decade by taxing the highest earners, according to the White House.
“I think you should be able to become a billionaire or a millionaire,” Biden told Congress on Wednesday night in a speech outlining his agenda. “But pay your fair share.”
The richest 1% of taxpayers, who have an average income of $2.2 million, would shoulder the burden of the tax hike, according to an analysis published by the Institute on Taxation and Economic Policy.
Two-thirds of this group would see their taxes increase, by an average $159,000 a year, according to the analysis.
Of course, the proposal faces headwinds in Congress. Passage isn’t guaranteed and parts of the plan may change.