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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 BidenTrump says he'll leave White House if Biden declared winner of Electoral College The Memo: Biden faces tough road on pledge to heal nation US records 2,300 COVID-19 deaths as pandemic rises with holidays 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 John TrumpVenezuela judge orders prison time for 6 American oil executives Trump says he'll leave White House if Biden declared winner of Electoral College The Memo: Biden faces tough road on pledge to heal nation 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 SandersThe Memo: Biden faces tough road on pledge to heal nation Clyburn: Biden falling short on naming Black figures to top posts Prepare for buyers' remorse when Biden/Harris nationalize health care MORE (I-Vt.), Sen. Cory BookerCory BookerSenate Democrats reelect Schumer as leader by acclamation  Hill associations push for more diversity in lawmakers' staffs Sanders celebrates Biden-Harris victory: 'Thank God democracy won out' MORE (D-N.J.), former Rep. Beto O'RourkeBeto O'RourkeMexican president breaks with other world leaders, refusing to acknowledge Biden win until election is finalized Mexico emerging as foreign policy challenge for Biden Beyoncé sports pro-Biden mask on Instagram MORE (D-Texas), Sen. Amy KlobucharAmy KlobucharHillicon Valley: YouTube suspends OANN amid lawmaker pressure | Dems probe Facebook, Twitter over Georgia runoff | FCC reaffirms ZTE's national security risk Democrats urge YouTube to remove election misinformation, step up efforts ahead of Georgia runoff YouTube temporarily suspends OANN account after spreading coronavirus misinformation MORE (D-Minn.), former Colorado Gov. John HickenlooperJohn HickenlooperDemocrats frustrated, GOP jubilant in Senate fight Chamber-endorsed Dems struggle on election night OVERNIGHT ENERGY: Down ballot races carry environmental implications | US officially exits Paris climate accord  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 MoultonUS national security policy in the 117th Congress and a new administration Overnight Defense: Trump fires Defense chief Mark Esper | Worries grow about rudderless post-election Pentagon | Esper firing hints at broader post-election shake-up | Pelosi says Esper firing shows Trump intent on sowing 'chaos' Democratic lawmakers lambast Trump over Esper firing as GOP remains mum 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.