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Biden Eyeing Tax Rate as High as 43.4% in Next Economic Package

  • People earning $1 million would pay 39.6% plus Obamacare levy
  • Total tax rates for New Yorkers, Californians could top 50%
Bloomberg business news
Biden to Propose Almost Doubling Capital Gains Tax for Wealthy
Updated on

President Joe Biden will propose almost doubling the capital gains tax rate for wealthy individuals to 39.6% to help pay for a raft of social spending that addresses long-standing inequality, according to people familiar with the proposal.

For those earning $1 million or more, the new top rate, coupled with an existing surtax on investment income, means that federal tax rates for wealthy investors could be as high as 43.4%. The new marginal 39.6% rate would be an increase from the current base rate of 20%, the people said on the condition of anonymity because the plan is not yet public.