US President Joe Biden may soon impose a new tax in the country. As per reports, Joe Biden administration will impose a new tax on rich people .The US administration plans to collect about US dollar 1 trillion. The money collected through this tax will be used childcare, universal pre-kindergarten education and paid leave for workers.
The proposal calls for increasing the top marginal income tax rate to 39.6% from 37%. It would also nearly double taxes on capital gains to 39.6% for people earning more than US dollar 1 million. This would be the highest tax rate on investment gains.
This will be the highest tax rate on investment gains, paid by the wealthiest Americans, since the 1920s. The rate has not exceeded 33.8% after Second World War. The new tax plan will not affect US families earning less than US dollar 400,000 a year.