The Biden Presidency

Taxes

Biden says America’s corporations and its wealthiest citizens need to pay their “fair share” of taxes. Some well-heeled Americans have already been planning for that scenario.

Biden is proposing to raise the income tax rate to 39.6% from 37% for people making over $400,000 annually. That sets the top rate back where it was during the Obama administration.

Biden would also set the corporate income tax rate at 28%, from the current 21%. The rate at the end of the Obama administration was 35%.

Biden hasn’t called for an additional “wealth tax” which was something several Democratic primary rivals to his left advocated during the primaries.

Biden wants to change the tax rules surrounding capital gains and inheritances. People making more than $1 million will have their capital gains taxed at their ordinary income rate, 39.6%, according to his plans.

The 40% estate tax would also apply a lot sooner. The 2017 Tax Cuts and Jobs Act increased the exemption level to estates below $11.4 million for individuals and $22.8 million for couples. The Trump administration law raised the exemption from $5 million and Biden says he wants to bring it back to “historical norms.”