Thank you to Brandon Roman and the team at Squire Patton Boggs (US) LLP for this report.


The American Jobs Plan and American Families Plan together include a wide variety of changes to the Tax Code, building on the tax proposals included in the already-passed American Rescue Plan and proposing new tax changes targeted mostly at corporations and wealthy individuals.

Below is a summary of the key tax provisions included in the American Jobs Plan and American Families Plan:

American Jobs Plan:

  • Increase the corporate tax rate to 28 percent
  • Increase to 21 percent the tax on Global Intangible Low Tax Income (GILTI), which will be calculated on a country-by-country basis and no longer exempt a 10 percent return on tangible investment abroad.
  • Impose a 15 percent minimum tax on corporate book income for firms with more than $100 million in revenue.
  • Repeal the Foreign-Derived Intangible Income (FDII) deduction.
  • Provide a tax credit for certain domestic business activity and disallow deductions in certain instances when jobs are offshored.
  • Eliminate tax incentives for the fossil fuel industry.

American Families Plan:

  • End the practice of “stepping up” the basis for gains in excess of $1 million ($2.5 million per couple when combined with existing real estate exemptions).
    • Gains will be taxed if the property is not donated to charity.
    • Family-owned businesses and farms would not have to pay taxes when given to heirs who continue to run the business.
  • Increase the capital gains tax rate to 39.6 percent on households making over $1 million.
  • Increase the top marginal tax rate to 39.6 percent for taxpayers earning more than $400,000.
  • Permanently eliminate the ability to tax carried interest income as ordinary income instead of capital gains.
  • Limit like-kind exchanges (LKEs), primarily used by real estate investors to defer capital gains taxes when they swap properties, by capping the benefit at $500,000.
  • Extend the Child Tax Credit increases in the American Rescue Plan through 2025 and make the Child Tax Credit (CTC) permanently fully refundable.
  • Make Permanent the Expanded Child and Dependent Care Tax Credit (CDCTC).
  • Make Permanent the Expanded Earned Income Tax Credit (EITC) for childless workers.
  • Extend expanded Affordable Care Act premiums tax credits in the American Rescue Plan.

Thank you to Brandon Roman and the team at Squire Patton Boggs (US) LLP for this report.


Policy and Taxation Group is your voice in Washington on economic freedom. We advocate for policies that allow American families to fully enjoy the economic liberties and benefits of a robust free market unique to our nation. For over 25 years, we have been the loudest voice in the nation’s capital on eliminating the death tax. This ill-conceived tax has a destructive impact on families, family businesses, job creation, and the national economy.