Biden’s $775B “caring economy” plan to be funded by RE taxes

Revenue to be raised by eliminating tax breaks for 1031 exchanges, real estate losses

Joe Biden (Getty)
Joe Biden (Getty)

Democratic presidential nominee Joe Biden has unveiled another piece of his economic plan — and it will be financed by taxes on real estate investors with incomes of $400,000 and above.

The $775 billion “caring economy” plan, which seeks to support care for children and the elderly, would target tax breaks for “like-kind” 1031 exchanges, a senior campaign official told Bloomberg. The plan would also prevent investors from deducting real estate losses from their taxable income.

Jonathan Gray

Jonathan Gray, Blackstone President and COO

Biden first teased the plan Monday at a fundraiser hosted by Blackstone Group’s Jonathan Gray. “I hope I don’t offend any of you by that but I really think it is totally consistent with a market economy and moving forward,” he told donors at the event. The candidate is set to deliver a speech on the plan Tuesday afternoon in Delaware.

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The proposed plan calls for universal preschool for three- and four-year-olds, the elimination of the waiting list for Medicaid home and community services, and a child care tax credit of up to $8,000 for low-income and middle-class families.

It would add 3 million jobs in the care and education sectors, including 150,000 community health workers for underserved communities.

The “caring economy” plan constitutes the third plank of Biden’s economic plan, which also includes a $2 trillion investment in clean energy and measures to boost manufacturing and innovation in the U.S. [Bloomberg] — Kevin Sun