Ready to pay more capital games taxes, even for 2020? It may happen if Biden and the communist Democrats get their way. Biden wants a RETROACTVE capital gains tax, which will affect all of you with 401k plans or anyone with investments in the stock market. These communists just don’t stop.
President Biden’s $6 trillion spending plan reportedly assumes that his proposed capital gains tax hike begins in April – meaning it would likely be too late for wealthy Americans to dodge the new levy.
The Wall Street Journal reported this week the effective date for the higher capital-gains tax rate would be correlated to Biden’s announcement of the increase in April, when he unveiled the $1.8 trillion American Families Plan.
In order to pay for the sweeping spending plan, the president called for nearly doubling the capital gains tax rate to 39.6% from 20% for Americans earning more than $1 million, restoring the top individual income tax rate to 39.6% and eliminating the so-called “step-up” basis.
Still, the tax increase faces an uncertain future in Congress: Republican lawmakers have balked at the scale of Biden’s spending plans and have unified to protect the 2017 tax law from any potential rollbacks. Some moderate Democrats have also raised concerns about Biden’s the proposed increases, warning that higher tax rates could derail the nascent economic recovery from the coronavirus pandemic.
The retroactive change to the tax law elicited fierce criticism from the leaders of the top six biggest U.S. banks, who testified before Congress on Thursday. The CEOs warned the proposal could spook investors and small businesses, inflicting more economic damage.