US President Joe Biden is reportedly set to propose a tax hike on the wealthiest Americans.
The proposal would raise the top marginal rate and increase taxes on investment gains for the rich.The tax rise would help pay for childcare and education, but would not be used for healthcare, according to reports.
The news triggered a selloff on Wall Street, with major indexes slipping during Thursday's trading session.
The White House said the American Family Plan, which Mr Biden is expected to lay out in full next week, will not affect any family earning less than $400,000 a year.
The proposal would increase the top marginal income tax rate to 39.6% from 37%, according to the New York Times and Bloomberg.
The move would effectively reverse Donald Trump’s 2017 income tax cut for highest income earners.