Forbes

Biden Proposes Capital Gains Tax Increase

Impactful Storytelling

The capital gains tax is a tax on the profit made when an asset is sold. The proposed increase would impact long-term capital gains, which are assets held for more than one year. The current rate for long-term capital gains is 20%, and the proposed increase would raise that rate to 39.6%. This increase would only apply to the highest earners, those with an income of over $1 million per year.

Impact on Investors

The proposed capital gains tax increase would have a significant impact on investors. It would reduce the after-tax profits of selling assets, making it less attractive to invest in stocks, bonds, and other assets. This could lead to a decrease in investment, which could hurt the economy.

Impact on Revenue

The proposed capital gains tax increase would generate an estimated $1.8 trillion in revenue over the next decade. This revenue would be used to fund President Biden's proposed infrastructure and social spending plans.

Controversy

The proposed capital gains tax increase has been met with controversy. Some argue that it is necessary to reduce inequality and raise revenue, while others argue that it would hurt the economy and discourage investment.

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