If Joe Biden gets to double the capital gains tax—as he will and then add the current California taxes, the high end folks will be paying 56% of their income in taxes. But Newsom has something up his sleeve—he and the Democrats want a “wealth tax” and a variety of other taxes—which could bring that to north of 65%. Think folks who pay that will stay in the State?
“Bloomberg News reported that the new top capital gains rate would increase from 20 percent to 39.6 percent on income over $1 million. That, coupled with an existing surtax on investment income, means that federal rates for investors could be as high as 43.4 percent, people familiar with the proposal told the outlet.
For $1 million earners in high-tax states, rates on capital gains could wind up higher than 50 percent. For New Yorkers, the combined state and federal capital gains rate could be as high as 52.22 percent. For Californians, it could be 56.7 percent.
The socialist goals of the Democrats will be reached in New York and California—possibly Massachusetts and Illinois as well—more than half the money you earn will go to government. Now wonder the illegal aliens are invading our nation—the people are stupid enough to elect folks that take away what they earn and give it to law breakers.
Biden eyes capital gains hike to 43.4%; for NY could be 52.2%, Calif. could be 56.7%
By Steven Nelson, NY Post, 4/22/21
President Biden will propose doubling the top capital gains tax rate on investments like stocks and real estate, according to a new report that sent stocks reeling Thursday.
Bloomberg News reported that the new top capital gains rate would increase from 20 percent to 39.6 percent on income over $1 million. That, coupled with an existing surtax on investment income, means that federal rates for investors could be as high as 43.4 percent, people familiar with the proposal told the outlet.
For $1 million earners in high-tax states, rates on capital gains could wind up higher than 50 percent. For New Yorkers, the combined state and federal capital gains rate could be as high as 52.22 percent. For Californians, it could be 56.7 percent.
The leak of the plan prompted investors to unload stocks Thursday, with the Dow Jones Industrial Average losing nearly 1 percent of its value.
The idea may be included in Biden’s more than $2 trillion infrastructure bill, but the White House has not confirmed the details.
The infrastructure plan was expected to include capital gains tax hikes — so that they roughly match tax rates for ordinary income — but the details were not included in initial White House blueprints for the sprawling package.
The new capital gains taxes could rise as high as 52.22 percent for some New York residents.AP Photo/Seth Wenig
Conservative advocates previously argued for capital gains taxes to be lowered by pegging gains in value to inflation, saying that doing so could unleash a real estate boom by lessening the cost of large financial transactions. Former President Donald Trump rejected the idea because it would disproportionately benefit the wealthy.
White House press secretary Jen Psaki on Thursday declined to confirm the report on capital gains rates.
Enlarge ImagePresident Joe Biden has unveiled plans for potential capital gains tax hikes.Photo by BRENDAN SMIALOWSKI/AFP via Getty Images
“We’re still finalizing what the pay-fors look like, but I will say that the president’s calculation is that there’s a need to modernize our infrastructure, there’s a need to invest in child care, there’s a need to invest in early childhood education and making our kids and the workers of the next generation more competitive. And he should propose a way to pay for it,” Psaki said at her daily press briefing.
“His view is … that can be on the backs of the wealthiest Americans who can afford it, and corporations and businesses who can afford it. And his view and the view of our economic team is that that won’t have a negative impact. There are alternative views or there are proposals that don’t exist yet on how to pay for it. That will be a part of the discussion. But he stays firm to his commitment to not raise taxes on Americans making under $400,000 a year, and he’ll have a range of proposals on how to pay for his plans to invest in education and child care.”
The tax hikes could be part of the president’s new infrastructure bill.Photo by Zach Gibson/Getty Images
By the close of trading Thursday, the S&P 500 had fallen 0.9 percent, wiping out an early gain. The benchmark index gave up nearly all of its gain from the day before, leaving it on track for its first weekly loss in five weeks.
The selling was widespread, with every sector in the S&P 500 closing lower. Technology stocks, banks and companies that rely on consumer spending, accounted for much of the skid. Treasury yields held mostly steady.
Overall, the S&P 500 lost 38.44 points to 4,134.98. The Dow Jones Industrial Average fell 321.41 points, or 0.9 percent to 33,815.90. The Nasdaq slid 131.81 points, or 0.9 percent, to 13,818.41.
Democrats may force Biden’s infrastructure bill through Congress with a bare majority in the Senate — and no Republican support — under special budget reconciliation rules that avoid the usual 60-vote threshold for passage in the upper chamber.
Biden proposed paying for the massive bill — which would set aside $400 billion for home health care and nearly $200 billion for electric vehicle subsidies — with sweeping tax increases on higher-income people and businesses.
One Biden-proposed tax increase would boost the corporate tax rate from 21 percent to 28 percent, partially repealing a steep drop in taxes on companies adopted in 2017 by Trump and the then-Republican-led Congress. He also proposes raising taxes on people earning more than $400,000 per year — though the White House has clarified that hikes also would apply to a two-income family earning a combined $400,000.
Republicans made their initial counter-offer Thursday, a $586 billion plan.
