While markets are doubtful over US President Joe Biden’s $2.25 trillion infrastructure spending bill, Bloomberg came out with the details of Biden’s “American Families Plan”, likely to be unveiled on Wednesday, per their sources.
The news said, “President Joe Biden and his economic team are planning to forgo an expansion of the estate tax in the administration’s coming individual tax-hike proposals.” It’s worth mentioning that the Democratic Party member promised to increase the estate tax, capital gains and corporate income during his election campaign.
“The estate tax is a levy of up to 40% on the richest Americans when they die. For 2021, an individual can leave up to $11.7 million to heirs or $23.4 million for a married couple before the estate tax kicks in” per the news.
In a piece of separate news, Axios conveyed that President Biden plans to ask Congress to pay for the entirety of the $1.8 trillion in new spending on health care, child care and education he’ll unveil on Wednesday night.
Although the news should have brightened the market sentiment, the pre-Fed mood and end-of-the-day inactivity seem to ignore the headlines.