- 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.