In advance of his speech last night to a joint session of Congress, President Biden yesterday unveiled the "American Families Plan," a $1.8 trillion proposal that calls for significant federal spending on education, children and families, nutrition and other initiatives through direct expenditures and targeted tax credits.

The administration proposes to pay for the President’s plan through an increase of the top individual rate to 39.6% from 37%, elimination of the capital gain rate preference for taxpayers with income of more than $1 million, elimination of certain real estate 1031 exchanges and an increase in Internal Revenue Service enforcement.

Two proposals within the plan that ABA will scrutinize closely include an end to the practice of "stepped-up" basis for assets at death (with certain exceptions for businesses and farms) and requiring financial institutions to provide additional information to the IRS to bolster tax compliance.

The proposed tax code changes are in addition to others floated by the Biden administration earlier this year as part of a plan for overhauling the nation’s infrastructure. Read more.