By New York Post. President Biden on Wednesday rolled out the blueprint for another massive tax-and-spend bill, dubbed the American Families Plan, which would boost federal spending by $1.8 trillion through tax hikes on high-income Americans and investors.
The package includes $511 billion for education, including universal preschool for 3- and 4-year-olds and free community college, and $225 billion for child care, including a subsidy that would cap expenses for most workers at 7 percent of income. The plan calls for $225 billion to subsidize 12 weeks of paid parental and sick leave and $45 billion more for food stamps and school food programs.
About $800 billion would go toward tax credits, including $200 billion for ObamaCare users. The plan would make permanent the recent expansion of tax credits for people with children — from $2,000 per year to $3,000, or $3,600 for children under age 6.
But in a major blow to New York-area Democrats including Gov. Andrew Cuomo, the proposal omits repeal of the 2017 SALT deduction cap of $10,000 per person, which hammered residents of higher-tax states by preventing them from deducting state tax payments on their federal tax returns. (Read more from “Biden Unveils $1.8T ‘Families’ Plan” HERE)
So, That’s How Biden Intends to Tax the Middle Class
By Townhall. Joe Biden says there will be no tax hikes for the middle class. Only the wealthy will pay more. It’s the same tired line that everyone knows is a lie. Given the ruinously expensive agenda that the Left wants to enact, the only logical way to pay for it is for EVERYONE’s taxes to go up. Does anyone really think the super-wealthy can fund a single-payer system for everyone? And that’s just one item in their left-wing goodie bag from hell. Well, Kelly Johnston wrote an op-ed for InsideSources to explain one tax hike that will wreck the middle class and noted how retirement accounts and pensions could be next:
You will be told that the tax plan only taxes the wealthy. Untrue. Corporations do not ultimately pay taxes – they collect them. Their “promise” won’t include intergenerational transfers of property and assets, like houses, family businesses, family farms, and stock.
Meet stepped-up basis. Here’s how that works. Say you’re a 60-year-old almost-retiree whose 90-year-old parent just passed away. You are bequeathed their Florida home acquired in 1980 for $100,000. Its value is now $500,000. Hopefully, it won’t be complicated by a reverse mortgage or isn’t burdened by other forms of leveraged debt. You sell it for $500,000. Thanks to “stepped-up basis,” you should owe no federal capital gains tax on the sale.
But what happens if all this happens after Democrats eliminate this so-called “loophole?” You’ll owe capital gains taxes on the gain in value since the property was purchased 41 years ago, most of which is probably inflation. That’s a likely 20 percent tax hit on the “gain” of $400,000 – some $80,000 to Uncle Sam. For people with incomes over $1 million, Biden may raise Capital Gains taxes to match the highest personal income tax rate of 39.5 percent.
(Read more from “So, That’s How Biden Intends to Tax the Middle Class” HERE)
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