Stocks Sink on Report That Biden Plans Massive Capital Gains Tax Hike

President Biden will propose a hike in the capital gains tax to 43.4 percent for top earners, nearly twice the current rate, Bloomberg News reported Thursday.

U. S. stocks turned lower on the report, with the S&P giving up all its gains for the day and declining by 0.5 percent. Nine out of eleven sectors in the S&P fell, with health care and real estate barely hanging on to positive territory.

The new rate of 39.6 percent would apply to wealthy taxpayers with incomes over one million dollars. The 3.8 percent investment income tax that funds part of Obamacare would also apply, bringing to top rate to 43.4 percent.

Biden has also indicated that he favors raising the top marginal tax bracket to 39.6 percent for those making more than $400,000 a year. The top rate was reduced to 37 percent in Trump’s Tax Cuts and Jobs Act. Prior to that, it had been 39.6 percent since 2013, when it was ra... (Read more)

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