Stock market tumbles amid worries about Biden proposal to nearly double capital gains tax rate

Although there have been no official changes yet, market fears over announced plans for a significant capital gains tax hike appear to have had a negative impact on the economy.

According to Bloomberg, the stock market tumbled significantly on Thursday, with the S&P 500 Index declining by 0.9%.

“If it ain’t broke, don’t fix it”

President Joe Biden is reportedly set to announce a spending plan that would nearly double the current capital gains tax rate paid by those earning $1 million or more to 39.6% from the 20% now in place.

Combined with a 3.8% surtax on investment income imposed to help fund the Affordable Care Act, the new rate would effectively be 43.4%.

U.S. Sen. Chuck Grassley (R-IA), who serves as the senior GOP member of the Senate Finance Committee, warned that the move would negatively impact economic growth.

“It’s going to cut down on investment and cause unemployment,” he complained. “If it ain’t broke, don’t fix it.”

Wealthy individuals in high-tax blue states would see an even more staggering increase, with those in New York paying a combined state and federal rate of 52.22%. The expected tax liability would be steeper still in California, where the predicted rate for wealthy residents would be 56.7%.

“Manifestly unfair risk”

Such numbers are likely to increase pressure from Democrats in favor of allowing taxpayers to deduct state and local taxes on their federal returns. That option was limited under former President Donald Trump’s 2017 tax reform plan.

U.S. Rep. Jerry Nadler (D-NY) said as much in a statement earlier this month, describing a repeal of state and local tax, or SALT, limitations as “a question of fundamental fairness.”

He went on to note that taxpayers in New York “already send $40 billion more in taxes to federal coffers than the state receives in return,” insisting that they now “face the manifestly unfair risk of being taxed twice on the same income.”

For her part, White House Press Secretary Jen Psaki said that the administration is “still finalizing what the pay-fors look like” in response to a question about the capital gains tax rate as part of the funding for the president’s proposed American Families Plan.

The Biden administration has already announced recommended tax hikes to pay for a massive infrastructure proposal, which would mean an increase in the corporate rate from 21% to 28% while levying a higher minimum rate on foreign earnings.

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10 Responses

  1. There are too many cooks in the kitchen in DC Biden is just the dishwasher, the VP? is the one who has the whip and if they congress and senate do what she says they maybe get rewarded? If I was them I would be careful of the “reward” can be dangerous. We need LOTS more Prayer for GOD’S help. The USA is being handed to China by people who have a business interest in China. Mr Bobolinski explained on FOX how he helped set up the China businesses.

    1. Maggie, you are so correct — we need God’s help in America. Our American’s need to call upon God for His help! Please PRAY that God will end this regime of “government.”

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  3. SNIFF & BLOW GOTTA GO! TIME TO DITCH BIDEN AND HARRIS!

    WE THE PEOPLE (aka SILENT MAJORITY) had countless opportunities to have stopped this nightmare, but we chose to give the DEMOCRATS what they expected of us, to REMAIN SILENT! Thus, making us equally complicit in the fraud perpetrated against United States Americans!

    Isn’t it time you actually did something, took action? How much more damage needs to be done?

    I urge everyone who reads this to PICK UP THE PHONE and call your REP AND SENATORS in DC and DEMAND a COMPLETE AUDIT AND INVESTIGATION into the 2020 ELECTIONS and for the IMMEDIATE IMPEACHMENT OF BIDEN AND HARRIS.

    BIDEN is completely UNFIT FOR OFFICE! And they both (BIDEN & HARRIS) have family members putting them both in a CONFLICT of interest position advertising and promoting their businesses and using their VP and POTUS both as an advertising self-interest, self-promoting position and it is ILLEGAL!

    Then copy and paste this information into an E-Mail and send to friends and family asking them to make the calls, then forward on to their friends asking them to make the calls and forward on! WE NEED TO MAKE THIS GO VIRAL!

    Members of the House
    202-224-3841

    Members of the Senate
    202-224-3121

    TOLL FREE:
    866-272-6622

    Keep in mind: SILENCE = ACCEPTANCE

    Please, don’t make an excuse not to make the calls, excuses as they say are like A-*****, we all got one!

  4. Well now not only is Dictator Joe Biden and Kamala Harris destroying our country from the inside they are letting us be invaded from the southern border as well. At the rate for which they are going before their first 4 years are up their won’t be a USA any longer. I hope that the Tide pod eating melenials are happy with themselves?

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