7 Ways Biden Plans to Tax the Rich (And Maybe Some Not-So-Rich People)

How would wealthier Americans pay more in taxes under President Biden's American Families Plan? Let us count the ways.

picture of protester on bridge holding large sign saying "Tax the Rich"
(Image credit: Getty Images)

President Biden's latest economic "Build Back Better" package – the $1.8 trillion American Families Plan – isn't kind to America's upper crust. It would provide a host of perks and freebies for low- and middle-income Americans, such as guaranteed family and medical leave, free preschool and community college, limits on child-care costs, extended tax breaks, and more. But to pay for all these goodies, the Biden plan also includes a long list of tax increases for the wealthiest Americans (and, perhaps, some people who aren't rich).

Whether any of the president's proposed tax increases ever make it into the tax code remains to be seen. Republicans in Congress will push back hard on the tax increases. And a handful of moderate Democrats will probably join them, too. So, don't be surprised if a fair number of the plan's revenue raisers are dropped or amended during the congressional sausage-making process…or even if some new tax boosts are added.

While we don't know yet which – if any – of the proposed tax increases will survive and be enacted into law, wise taxpayers will start studying the plan now so that they're prepared for the final results (any changes probably won't take effect until next year). To get you going in that direction, here's a list of the 7 ways the American Families Plan could raise taxes on the rich. But even if you're not particularly wealthy, make sure you read closely to see if you might be caught up in any of the proposed tax hikes, since a few of them could snare some not-so-rich people in addition to the one-percenters.

Rocky Mengle
Senior Tax Editor, Kiplinger.com

Rocky is a Senior Tax Editor for Kiplinger with more than 20 years of experience covering federal and state tax developments. Before coming to Kiplinger, he worked for Wolters Kluwer Tax & Accounting and Kleinrock Publishing, where he provided breaking news and guidance for CPAs, tax attorneys, and other tax professionals. He has also been quoted as an expert by USA Today, Forbes, U.S. News & World Report, Reuters, Accounting Today, and other media outlets. Rocky has a law degree from the University of Connecticut and a B.A. in History from Salisbury University.