President Biden is signing an executive order today establishing a $15-an-hour minimum wage for federal contractors. Biden will also eliminate a lower “tipped” minimum wage for certain federal contractors who receive tips.
Meanwhile, the White House is preparing to propose an increase in the capital gains tax to help pay for Biden’s upcoming American Families Plan. The proposal calls for increased federal spending on child care, pre-K, paid family leave and tuition-free community college. Brian Deese, director of the National Economic Council, said the capital gains tax increase will target only the very wealthiest Americans.
Brian Deese: “This change will only apply to three-tenths of a percent of taxpayers, which is not the top 1%. It’s not even the top one-half of 1%. We’re talking about three-tenths of a percent. That’s about 500,000 households in the country that we’re talking about.”
On Wednesday, President Biden will speak to a joint session of Congress — a ceremony that was delayed from February due to the coronavirus pandemic.