President Joe Biden is planning to raise taxes, including doubling the capital gains tax to 39.6% for millionaires, to fund a fresh round of spending on families and child care, according to multiple reports.

Markets dropped Thursday as news of the proposals, reported by Bloomberg, spread.

The news agency cited unnamed sources saying the plan would almost double the capital gains rate from 20% for those earning $1 million or more.

Reuters reported the president is also planning to raise the marginal income tax rate from 27% to 39.6% for the most wealthy.

White House press secretary Jen Psaki declined to comment on the reports during her daily briefing but said details of the American Families Plan will be outlined in the president’s address to a joint session of Congress next week. She did not deny the reports’ accuracy.

“The president remains committed to his campaign commitment of not raising taxes for anyone making less than $400,000 a year, and that will certainly be reflected in his proposal he makes next week,” she said.

The plan will include “historic investment” in child care and education, she said, adding that the president was finalizing details with his domestic policy team.

“I’m not going to get ahead of him making final decisions,” she said.

The S&P 500 was down 1% in the early afternoon as early gains were reversed on news that wealthy investors would be hit.

The proposals mark the latest round of Biden’s colossal spending commitments, starting first with his coronavirus rescue plan, followed by a $2.3 trillion infrastructure proposal

The next phase is based on what officials describe as “human infrastructure.” It is expected to include billions of dollars for universal pre-kindergarten, free community college tuition, and expanded subsidies for child care.

Biden is also likely to propose extending an expanded child tax credit that was introduced temporarily by the $1.9 trillion economic aid package.

Some Democrats are pushing for it to be made permanent.

In a statement issued this week, Sens. Sherrod Brown of Ohio, Cory Booker of New Jersey, and Michael Bennet of Colorado, along with with Reps. Rosa DeLauro of Connecticut, Suzan DelBene of Washington, and Ritchie Torres of New York, said:

“Expansion of the Child Tax Credit is the most significant policy to come out of Washington in generations, and Congress has an historic opportunity to provide a lifeline to the middle class and to cut child poverty in half on a permanent basis.”

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