What is the proposed Biden death tax?
PRESIDENT Joe Biden has recently proposed a tax increase on people earning more than $400,000 a year. Biden's recent tax increase proposal has been nicknamed "death tax" by some. As he's announced his recent tax proposal, the president pledged not to raise taxes for Americans earning less than $400,000. Biden campaigned on a platform that promised to increase the federal tax rate for those earning more than $400,000 from 37 percent to 39.6 percent. He also campaigned on an increase in the corporate tax rate from 21 percent to 28 percent. It would reverse some of the tax cuts granted to corporations by former president Donald Trump in 2017. 5 Biden's recent tax increased has been dubbed a 'death tax' Credit: Splash  Heads of households earning more than $481,000 and married individuals filing separate tax returns with income over $254,650 would also pay the higher rate. Biden acknowledged that he will struggle to get any Republican support for an increase in federal taxes, but remains sure of Democratic supporters. For properties worth more than $11.7million, capital gains tax is imposed on the increase in value of the home. But, Biden wants to reduce that threshold to $1million, Mail Online reports. Hank Adler, an associate professor of Chapman University, and attorney Madison Spach told The Wall Street Journal: The American Families Plan as proposed would impose a new death tax that would punish middle-class individuals who chose to invest in America and leave something for their children rather than spend every dollar. "The plan does not move the goalposts. It totally changes the rules of the game." The authors of the study used a hypothetical story of a young widow who had bought a New York home decades ago for $250,000. 5 President Biden's proposed tax increase will effect people earning more than $400,000 a year Credit: AFP  The home, now worth $2.5million, was the only asset at the time of her death. There is a difference of $2.25million in the value of the property and there is a $1.25million exemption for single homeowners. Around $1million would be taxed at a rate of 40.8 percent, meaning her kids would have a bill of $408,000. Meanwhile, the only two assets of the Biden's subject to capital gains tax at death would be their homes. The couple bought a home in Wilmington, Delaware for $350,000, and their Rehoboth Beach property cost $2.7million. The rise in value is likely to be less than the $2.5million exemption allowed for a married couple meaning the estate wouldn't be hit. It comes after Biden told Americans earning less than $400,000 would not see a tax hike to fund infrastructure projects worth over $4trillion. In an interview with ABC in March, Biden hit out at Republicans criticizing the tax breaks included in his $1.9trillion Covid relief package. The president said that he was focusing on giving tax breaks to the bottom 60 percent of the population, while the GOP is only interested in the Trump tax cut where 83 percent went to the top 1 percent of people in America.  "If we just took the tax rate back to what it was when (George W) Bush was president, top rate paid 39.6 percent in federal tax, that would raise $230 billion, Biden noted. For the middle class?" White House Press Secretary Jen Psaki later reiterated Bidens comments that the top 10 percent need to be paying more. 5 White House Press Secretary Jen Psaki said the top 10 percent need to be paying more Credit: AFP  Most read in News Breaking MOWN DOWN Truck driver shot by cops after plowing into bike racers, critically injuring 6 DRUG ARREST Boy, 2, fights for life after 'eating cannabis' as 5 arrested for child cruelty Breaking FATAL SMASH Bus crash leaves at least three dead and 'many injured after SUV collision' PARK PANIC Woman left covered in blood as 'man with Taser & knife' sends NY crowd fleeing 'WE'LL MISS HIM ALWAYS' Bidens pay tribute to 'sweet, good boy' Champ as First Dog dies 'THE BUTCHER' Iran's new president had pregnant women tortured & ordered mass executions  She said that the president believes "those at the top are not doing their part" and "obviously that corporations could be paying higher taxes." In April, Biden proposed a capital gains hike of nearly 20 percent on Americans earning more than $1million per year. The White House proposed the increase to help pay for the American Families Plan.