Biden Proposes Nearly Doubling Capital Gains Tax
Long-term capital gains could be taxed at 39.6% for high-income taxpayers
Proposed increase would apply to gains held for more than one year
In his proposed budget for Fiscal Year 2025, President Biden has proposed a significant increase in the capital gains tax rate for high-income taxpayers. The proposed increase would nearly double the current rate, from 20% to 39.6%. The proposed increase would apply to long-term capital gains, which are gains on assets held for more than one year.
The proposed increase in the capital gains tax rate is part of a broader effort by the Biden administration to raise taxes on high-income earners. The administration has also proposed increasing the income tax rate for high-income taxpayers and the estate tax rate for large estates.
The proposed increase in the capital gains tax rate has been met with criticism from some quarters. Critics argue that the increase would discourage investment and economic growth. Supporters of the increase argue that it is necessary to raise revenue and reduce income inequality.
The proposed increase in the capital gains tax rate is still under consideration by Congress. It is unclear whether the increase will be enacted into law.
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