The Blubber

There is a new budget that Biden has proposed.

It includes:

• Biden’s new budget has proposed tax on income over $400,000 at 39.6%.
• The plan would increase the net investment income tax to 5%, from 3.8%, for earnings of more than $400,000, including regular income, capital gains and so-called pass-through business income
• The plan would also nearly double the capital gains tax rate for investment to 39.6% from 20% and raise income levies on corporations and wealthy Americans.
• Calls for a 25% minimum tax on billionaires
• Biden is proposing eliminating the carried-interest tax break, which allows private equity managers and venture capitalists to pay lower rates on their earnings from the investments they make.
• In addition, all special tax preferences for oil and gas companies would be terminated, saving $31 billion.

“Since Medicare was passed, income and wealth inequality in the United States have increased dramatically,” the White House said in a fact sheet. “By asking those with the highest incomes to contribute modestly more, we can keep the Medicare program strong for decades to come.”

House Speaker Kevin McCarthy immediately dismissed Biden’s plans to increase levies, telling reporters Wednesday “I do not believe raising taxes is the answer.”