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Biden proposes tax increases for wealthy as part of health care plan

Biden proposes tax increases for wealthy as part of health care plan
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Former Vice President Joe BidenJoe BidenCNN: Bidens' dogs removed from the White House Federal judge rules 'QAnon shaman' too dangerous to be released from jail Pelosi says Capitol riot was one of the most difficult moments of her career MORE on Monday released a health care plan that his presidential campaign says would be paid for by raising taxes on the wealthy.

"The Biden Plan will make health care a right by getting rid of capital gains tax loopholes for the super wealthy," the former vice president's 2020 campaign said in an outline of the plan.

Biden's health care plan is designed to build on ObamaCare and create a public option. Campaign officials told news outlets on Sunday that the plan is estimated to cost about $750 billion over a decade, and that Biden is calling for several tax changes to offset the cost.

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The 2020 front-runner is proposing to raise the top individual income tax rate to 39.6 percent, which is where the top rate was set before President TrumpDonald TrumpTrump vows 'No more money for RINOS,' instead encouraging donations to his PAC Federal judge rules 'QAnon shaman' too dangerous to be released from jail Pelosi says Capitol riot was one of the most difficult moments of her career MORE's tax-cut law was enacted. The top individual rate is currently 37 percent.

Additionally, Biden is proposing to increase taxes on wealthy people's capital gains, which people pay when they sell investments. The top rate on long-term capital gains is currently 20 percent, and Biden is proposing to roughly double that for those making over $1 million.

Biden's campaign also said that his "capital gains reform will close the loopholes that allow the super wealthy to avoid taxes on capital gains altogether." 

This isn't the first time Biden expressed an interest in increasing capital gains taxes. He has repeatedly said in campaign events that he thinks capital gains taxes are too low. He has also called for ending a tax break known as "step-up in basis" that reduces capital gains tax liability on investments people pass on to their heirs.

Biden is one of a number of 2020 Democratic presidential candidates who are calling for higher capital gains taxes. Others who have called for raising tax rates on investment gains include Sen. Bernie SandersBernie SandersSanders urges support for Newsom amid recall effort This week: Congress set to send .9 trillion coronavirus bill to Biden Lawmakers, activists remember civil rights icons to mark 'Bloody Sunday' MORE (I-Vt.), Sen. Cory BookerCory Booker'Bloody Sunday' to be commemorated for first time without John Lewis It's in America's best interest to lead global COVID-19 vaccine distribution ABC names new deputy political director, weekend White House correspondent MORE (D-N.J.), former Rep. Beto O'RourkeBeto O'RourkeTexas Republican criticizes Cruz for Cancun trip: 'When a crisis hits my state, I'm there' Progressives target 'Cancun Cruz' in ad to run on 147 Texas radio stations 'Get off TV': Critics blast Abbott over handling of Texas power outages following winter storm MORE (D-Texas), Sen. Amy KlobucharAmy KlobucharDemocrats near pressure point on nixing filibuster  Hillicon Valley: China implicated in Microsoft breach | White House adds Big Tech critic | QAnon unfazed after false prediction FDA signals plan to address toxic elements in baby food MORE (D-Minn.), former Colorado Gov. John HickenlooperJohn HickenlooperSenate rejects Cruz effort to block stimulus checks for undocumented immigrants The Hill's 12:30 Report - Presented by ExxonMobil - Third approved vaccine distributed to Americans Democrats hesitant to raise taxes amid pandemic MORE (D), former Rep. John DelaneyJohn DelaneyCoronavirus Report: The Hill's Steve Clemons interviews Rep. Rodney Davis Eurasia Group founder Ian Bremmer says Trump right on China but wrong on WHO; CDC issues new guidance for large gatherings The Hill's Coronavirus Report: Kansas City Mayor Quinton Lucas says country needs to rethink what 'policing' means; US cases surpass 2 million with no end to pandemic in sight MORE (D-Md.) and Rep. Seth MoultonSeth MoultonLawmakers want Pentagon, DOJ to punish current, former military members who participated in riot House chairman endorses Michele Flournoy for Biden's Pentagon chief Trump critic: I am not afraid of Trump MORE (D-Mass.).

Democrats argue that raising capital gains taxes would make the tax code more fair. But Republicans generally oppose raising capital gains taxes, arguing that doing so would reduce incentives to invest and save money.

Trump's tax law did not make changes to capital gains tax rates, but Trump has said that he's considering acting unilaterally to cut capital gains taxes by indexing gains to inflation.