The tax world is abuzz over the Build Back Better Act, which is a $3.5 trillion infrastructure federal package trying to move through Congress. The Act would include spending programs to fund insolvent and poorly-run cities, expanding the child tax credit, and the earned income tax credit.
It also would increase taxes across the board substantially.
The national Tax Foundation estimates if the version proposed by the House would cost the U.S. 303,000 jobs and a decrease of 0.68% in wages.
In the House proposal, the top individual tax rate would increase to 28.8%, as well as create a 3% surcharge for gross adjusted income above $5 million.
The proposal would also return to a progressive corporate income tax rate structure with a top rate of 26.5 percent applying to corporate income above $5 million.
In addition, the proposed top capital gains tax rate (including state taxes) would be 3rd highest in the world, at 37%. This is just behind Chile (40%), and Denmark (42%). The current rate is 29%.
If you were to include state taxes, some states, like California, would tax capital gains at 45.1%.