WASHINGTON (Reuters) – U.S. President Joe Biden will propose plans next week to hike taxes on the wealthy to fund major investments in child care, universal pre-kindergarten education, and paid leave for workers, sources familiar with the plan said.
Biden will propose raising the marginal income tax rate to 39.6% from 37%, and nearly doubling taxes on capital gains to 39.6% for people earning more than $1 million, according to the sources.
Details of Biden’s “American Families Plan” are still being finalized, but the president plans to announce the measures next week before his first address to Congress.
Congress must approve the various tax measures included in the plans.
(Reporting by Jarrett Renshaw and Trevor Hunnicutt; writing by Andrea Shalal; Editing by Chizu Nomiyama)
