Tax laws have undergone notable changes in the presidential tenure of Joe Biden. He has significantly moved forward with the key elements of tax proposals, also known as Built Back Better. William D King says these changes are of paramount significance because they have a direct impact on the lives of American citizens. The enactment of these acts by Congress was in the limelight before they became law.
The tax policy and three-part program of Joe Biden require proper analysis and detailed discussion in both the stages of proposal and enactment. The American Rescue Plan, the American Job Plan, and American Families Plan are significant steps the present government took to impact the economy and related aspects.
The enactment of the American Rescue Plan, as stated by William D King
The American Rescue Plan transformed into law in 2021 involves various individual tax laws and provides a direct cash payment to different individuals. It is basically to benefit the lower strata of society who were a significant part of the tax policy campaign of Joe Biden. However, these modifications have time limitations and remain designed for providing temporary remedies for different problems. From Child Tax Credits to child and dependent care tax credits, the act has various integral parts.
Proposal of American Families Plan
The year 2021 also saw the announcement of the American Families Plan, having the estimation of 1.8 trillion dollars. The plan directs towards mounting taxes among the wealthy sections of society to grab higher capital gain. The program also has special provisions for free education to children for four additional years. They would also assist universities and colleges serving minority groups and extend support to paid families and nutritional programs. The administration is interested in reversing the IRS or Internal Revenue Service that has caused a significant reduction of auditing along with enforcement efforts, says William D King. The government is proposing to increase the funding for the IRS to ensure the enforcement of these tax laws.
Proposal of American Jobs Plan
For increasing income tax on corporate profit, the government proposed another plan, namely the American Jobs Plan. The increase in taxes was to provide help in the form of funding for infrastructure improvement goals. That is estimated to cost around 2.3 trillion dollars. Hence, these tax proposals have a direct impact on the lives and economy of American citizens. If you look at survey reports. You will anticipate that the wealthy sections of society are taxed higher than the low-income groups. Taxpayers who have income above $1,000,000 would have to pay 43.4% on the capital gain. Hence, these estimations, as proposed by the government, would add more cash to the economy. That would lead to the improvement of the same.
Tax increases were basically to fund the infrastructure program undertaken by the Joe Biden government. These tax policies aim at creating jobs and investment in infrastructural development. Hence, it is a positive step by the present government. That will have an optimistic implication on the lives of millions of individuals.