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 BidenBiden campaign raised M more than Trump in the month of June RNC, Trump campaign raised 1M in June Michigan shuts down most indoor bar service in bid to prevent virus resurgence 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 TrumpHouse panel approves 0.5B defense policy bill House panel votes against curtailing Insurrection Act powers after heated debate House panel votes to constrain Afghan drawdown, ask for assessment on 'incentives' to attack US troops 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 SandersHickenlooper beats back progressive challenge in Colorado primary Progressive groups urge Biden to tap Warren as running mate Young Turks host says Elizabeth Warren should be Biden's VP pick MORE (I-Vt.), Sen. Cory BookerCory Anthony BookerGOP senators debate replacing Columbus Day with Juneteenth as a federal holiday House to pass sweeping police reform legislation Police reform in limbo after Senate setback MORE (D-N.J.), former Rep. Beto O'RourkeBeto O'RourkeColorado GOP Rep. Scott Tipton defeated in primary upset Clinton, Buttigieg among Democrats set to hold virtual events for Biden Redistricting: 'The next decade of our democracy is on the ballot' in November MORE (D-Texas), Sen. Amy KlobucharAmy KlobucharThe Hill's Coronavirus Report: Stagwell President Mark Penn says Trump is losing on fighting the virus; Fauci says U.S. 'going in the wrong direction' in fight against virus Hillicon Valley: Facebook takes down 'boogaloo' network after pressure | Election security measure pulled from Senate bill | FCC officially designating Huawei, ZTE as threats Democrats, voting rights groups pressure Senate to approve mail-in voting resources MORE (D-Minn.), former Colorado Gov. John HickenlooperJohn HickenlooperThe Hill's Campaign Report: Colorado, Utah primary results bring upsets, intrigue The Hill's Morning Report - Republicans shift, urge people to wear masks Hickenlooper beats back progressive challenge in Colorado primary MORE (D), former Rep. John DelaneyJohn DelaneyEurasia 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 Minnesota AG Keith Ellison says racism is a bigger problem than police behavior; 21 states see uptick in cases amid efforts to reopen MORE (D-Md.) and Rep. Seth MoultonSeth MoultonHouse panel votes to constrain Afghan drawdown, ask for assessment on 'incentives' to attack US troops Overnight Defense: House panel votes to ban Confederate flag on all Pentagon property | DOD report says Russia working to speed US withdrawal from Afghanistan | 'Gang of Eight' to get briefing on bounties Thursday Democrats expect Russian bounties to be addressed in defense bill 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.