Biden to propose ‘tax hike’ on wealthiest Americans

According to details, the proposal would increase the top marginal rate and hike taxes on investment gains for the rich.

The increase in tax ration would be utilized in childcare and education sectors, but would not be used for healthcare.

The news had major impact on country’s stock exchange with major indexes falling during Thursday's trading session.

The White House clarified that the ‘American Family Plan’, which Joe Biden is likely to reveal in full next week, will not impact any family earning less than $400,000 a year.

"His view is that that should be on the backs... of the wealthiest Americans who can afford it and corporations and businesses who can afford it," said White House Press Secretary Jen Psaki.

The proposal would help in the growth of marginal income tax rate to 39.6% from 37%. The move would effectively reverse former US President Donald Trump’s 2017 income tax cut for highest income earners.

It is being said that the move will face wide criticism from the Republicans in Congress. Although the Democrats hold a slim majority, they may not support the plan unanimously.