2. Proposal: No More Capital Gains Tax Breaks for High Earners
Are you earning $1 or more? Then you should know by now that Biden wants to tax all capital gains and dividends at ordinary income rates, meaning that taxes on selling stocks will jump to 39.6% from the current 20%.
Though this is close to a 100% tax increase, certain individuals might have to pile on another 3.8% net investment tax. So, the highest earners that have since been paying a 23.8% federal tax rate could end up having to pay 43.4% instead.
Again, this is only something that will affect the super-rich, so if you’re not reporting over $1 million in income, you needn’t worry!