BIDEN PROPOSING A 43.4% CAPITAL GAINS RATE

Key Points:

  • The Biden administration proposed to increase the capital gains tax rate from 20% for most assets held for at least a year, to 39.6% for people making more than $1 million.
  • Capital gains are also subject to the 3.8% Medicare tax, bringing the new capital gains rate to 43.4%.
  • The current top rate is 23.8%, which includes a 3.8% ObamaCare surcharge.
  • 43.4% is well above Congress’s Joint Committee on Taxation’s recommendation of a 28% rate because it would generate the most revenue for the government.
  • The Right Facts will continue to monitor capital gains taxes.
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