President Biden’s Fiscal Year 2024 budget proposal contains trillions of dollars in new tax hikes on American individuals and businesses. Biden’s proposed tax hikes come just months after Democrats passed more than $700 billion in tax increases in the so-called Inflation Reduction Act.
Biden’s budget proposal is a direct violation of the President’s campaign pledge to not raise taxes on small businesses.
Below is a list of tax hikes included in Biden’s budget proposal. This list will be updated as more details of Biden’s Budget become available.
Highest Personal Income Tax Rate Since 1986. Biden’s budget calls for a top combined federal tax rate of about 45%, the highest since 1986 when “Walk Like An Egyptian” was the number one song and the first Top Gun movie was released.
Highest Capital Gains Tax Since 1978. A rate over twice as high as China’s capital gains tax rate. Biden’s plan nearly doubles the capital gains tax rate for investment to 39.6% from 20%. The U.S. currently has a combined capital gains rate of over 29 percent, inclusive of the 3.8 percent Obamacare tax and the 5.4 percent state average capital gains rate. Under Biden, this rate would approach 50 percent. This would give the U.S. a capital gains tax that is significantly higher than foreign competitors. Blue states such as California would see capital gains rates above 60%.