FOES OF TAX INCREASE FACE INCREASE
Foes of tax increase face increase. Many Republicans who are opposed to Biden’s American Families Plan would have a large tax increase on several investments, including real estate investments, if the Congress approves the proposal for $1.8 trillion. President Biden’s American Families and Jobs Plan would be partially funded by rolling back the 2017 Tax Cuts and Jobs Act, passed by then President Trump, including a tax break for commercial real estate investors, which helped the Trump Company gains millions in revenue. Republicans have roundly opposed the proposals, with Senate Minority Leader Mitch McConnell, R-Ky ., declaring that undoing any part of the 2017 tax cuts the GOP’s “red line”. Senate Republicans are instead pushing a much smaller standalone infrastructure proposal that would only provide $189 billion in new funding while replacing the proposed tax increases with user fees like gas and mileage taxes that would disproportionately be paid by workers. Foes of tax increase face increase.
Though Republicans have long opposed tax increases, their newfound appetite to shift the tax burden to the middle class has surprised some economists. Some of the biggest opponents of President Biden’s tax proposal would personally save hundreds of thousands in taxes if the plan is defeated, according to an analysis by invest in America Action, a progressive advocacy group backing President Joe Biden’s plan. “Follow the money and you’ll see that some of the loudest opponents of President Biden’s American Jobs and Families Plan are the ones with the most to lose,” Maddy McDaniel, a spokesperson for the group, said in a statement. They’d rather sell out the middle class than pay their fair share in capital gains taxes.”
The American Families Plan would roll back that “like-kind” exchange exemption. The proposal would “end the special real estate tax break–that allows real estate investors to defer taxation when they exchange property–for gains greater than $500,000,” the White House said last month. Some Republican Senators stand to get hard due to the personal holdings they have, if the bill becomes law.