Biden tax plan

Biden released his budget plan for this year and it looks good meaning it will transfer money from the rich to the non-rich. This is in response to the widening wealth gap. It increases the capital gains tax from 20% to 39.6% for those earning more than $1 million per year A 25% minimum tax on families earning more that $100 million per year Increases the top income tax rate from 37% to 39.6% Increases the Obamacare tax from 3.8% to 5%. This is a tax on investment earnings for those earning more than $400,000 per year. Increase corporate tax from 21% to 28%. It would also increase taxes on foreign earnings to 21% up from the current 10.5%. It gets rid of the carried interest tax which was a tax break for hedge fund managers. It would increase the tax on stock buybacks from 1% to 4%. This will encourage business to do something else, like investing, their profits instead of buying back stock. Recall that a few years ago the companies were given a special low tax to bring money back from overseas called repatriation. They brought home about $700 billion but uses half of that to buy back stock rather than reinvest. The plan limits how much rich people can put into Roth IRA's which was a loop hole for super rich. It cuts the depletion allowance for oil companies. This was money they received each year much like the subsidies that farmers get. It puts the child tax credit back up to where it was during the pandemic. This is a big deal for families with children. Currently a family of four can earn up to $55,000 and pay no income tax. With this change they can earn up to $85,000 and that means that two/thirds of workers will pay no tax.