US Pres. Biden to use tax increases to pay for major spending plan for families – Reuters

US President Biden will announce a major spending plan next week for families and child care and he is planning to use tax increases on wealthy to pay for it, Reuters reported on Thursday, citing sources familiar with the matter.

“Biden will propose raising the marginal income tax rate to 39.6% from 37%,” the sources noted. “Biden will also propose nearly doubling taxes on capital gains to 39.6% for people earning more than $1 million.”

Market reaction

Wall Street’s main indexes continue to push lower after this headline and were last seen losing between 0.8% and 1.1%.