Stocks Sink on Report That Biden Plans Massive Capital Gains Tax Hike

[mystery-ak]

Stocks Sink on Report That Biden Plans Massive Capital Gains Tax Hike

John Carney 22 Apr 2021

President Biden will propose a hike in the capital gains tax to 43.4 percent for top earners, nearly twice the current rate, Bloomberg News reported Thursday.

U.S. stocks turned lower on the report, with the S&P giving up all its gains for the day and declining by 0.5 percent. Nine out of eleven sectors in the S&P fell, with health care and real estate barely hanging on to positive territory.

The new rate of 39.6 percent would apply to wealthy taxpayers with incomes over one million dollars. The 3.8 percent investment income tax that funds part of Obamacare would also apply, bringing to top rate to 43.4 percent.

Biden has also indicated that he favors raising the top marginal tax bracket to 39.6 percent for those making more than $400,000 a year. The top rate was reduced to 37 percent in Trump’s Tax Cuts and Jobs Act. Prior to that, it had been 39.6 percent since 2013, when it was raised from 35 percent. Biden has said that he wants to tax capital on par with labor.

Capital gains rates apply when an asset—such as a house, shares of stock, a business—that has been held over a year are sold for a gain. The current capital gains tax rates are 0 percent for a married couple earning less than $80,000, 15 percent for couples earning more than $80,000 and less than $496,000, or 20 percent for wealthier households.

In addition, a married couple filing jointly must pay the investment income tax of 3.8 percent if their combined income crosses the $250,000 threshold.

more
https://www.breitbart.com/economy/2021/04/22/stocks-sink-on-report-that-biden-plans-massive-capital-gains-tax-hike/

[LMAO]

None of this will bring much more revenue to the federal government. But it will make Progressives feel good about themselves

[IsailedawayfromFR]

None of this will bring much more revenue to the federal government. But it will make Progressives feel good about themselves

It will most certainly sink the strongest stock progression of our time into a freefall.

Could lose +10,000 pts rest of year as those with gains selloff prior to yearend.

He really knows how to destroy the economy.  Tax it to hell and spend even worse with no end in sight.

And we still have Medicare for all, reparations, the Green New Deal and welfare for illegals to look forward to.

Hard to believe he has only been at it for 3 months isn't it?

[DefiantMassRINO]

How about we take your money ... Let's tax political donations ... for the children

All those PAC's, campaign committies, exploratory commitiies, etc., flush with cash that could better serve society if it were allocated towards correcting the institutionalized injustices perpetrated by politicians.

[dfwgator]

Wall Street wanted Biden, they got Biden.

[IsailedawayfromFR]

How about we take your money ... Let's tax political donations ... for the children

All those PAC's, campaign committies, exploratory commitiies, etc., flush with cash that could better serve society if it were allocated towards correcting the institutionalized injustices perpetrated by politicians.

I like the way you think.

Why not expand and get Hollywood actors's pay to be capped as well as sports athletes?

Who needs to be paid $50 million a year to live in this country?

[240B]

Wall Street wanted Biden, they got Biden.

Don't believe this will be legitimate.
The Communists will include some kind of backdoor out of it for their donors and supporters.
The only people who will be hit will be the people the Communists want to hit.

[mountaineer]

Why do I suspect taxes will go up for all of us, not just those making over $400K or $1 million?

[cato potatoe]

Why do I suspect taxes will go up for all of us, not just those making over $400K or $1 million?

They will eventually rise, and your net assets will be debased and/or confiscated in some indirect fashion.  There is no other way for the democrats to fund their initiatives.  Just debating this act in congress will tank the stock market prior to year end. 

At some point, we are bound to witness an illegal flight of wealthy Americans.  Their assets are "trapped" here to a great extent by our unique worldwide tax scheme.  One possible route is the liquidation of tangible assets, followed by a move to countries with no extradition treaty.

[240B]

No doubt that politicians with 10s sometimes 100s of millions of dollars, much of which was made by insider trading in the stock market, will magically be exempted from 'capital gains tax', as will their donors and supporters.

The only people who will pay this new tax will be Republicans and or anyone/any group the Democrats and their IRS consider to be what they call "right wing". For example, I am sure the Democrats/IRS are salivating at the thought of eviscerating Trump's portfolio and anyone who works at Fox News. However, Hollywood, BLM members, all prominent Leftist activists, will be left untouched.

"Law" in itself does not matter. (as we can see from thousands of glaring examples by Democrats)
The only thing that truly matters is how the law is enforced. (or not enforced)
In my opinion, this will be just another tool used by Democrats and their DNC run IRS to persecute anyone who does not fall inline with their goals and agenda. It will be used as a Sword of Damocles, a tool of extortion to force people into compliance with the Deep State.

[GtHawk]

All hail the Biden economy..........................Trumps fault.

[catfish1957]

The taxed income thresholds for the Biden wealth redistribution plan will shrink as we go.  $400K?  It'll be $100K in no time.

[IsailedawayfromFR]

The taxed income thresholds for the Biden wealth redistribution plan will shrink as we go.  $400K?  It'll be $100K in no time.

Actually, it will be worse as libs take inflation to new highs so that today's $400k will be the effective future $100k.

A double whammy.

[libertybele]

None of this will bring much more revenue to the federal government. But it will make Progressives feel good about themselves

Lip service to their idiot liberal supporters.