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President Joe Biden floated a bevy of tax increase proposals as part of the president’s FY 2025 budget. That budget comes in at a cool $7.3 trillion, and someone has to pay for it. That likely means serious tax increases, and the president is not shy about proposing them. Much of his focus is on getting higher income taxpayers to pay more, but the one that seems to be capturing the biggest headlines is his planned reboot of capital gain taxes. Higher federal rates plus state taxes will mean paying over 50% in some cases.https://www.forbes.com/sites/robertwood/2024/05/06/under-biden-tax-plan-capital-gains-tax-will-exceed-50-in-11-states/?sh=aae0c857ce98
If you sell your stock, property or crypto and you’ve held it for more than one year, you get a classic tax break. Long-term capital gains are taxed at lower rates than ordinary income. But how much lower depends on your income. If your taxable income is $47,025 or less, you pay zero tax on your long-term capital gain. If your taxable income is from $47,026 to $518,900, you’ll pay 15% on your long-term capital gain. ...
How about state taxes, you might wonder? The Daily Mail noted that there are 11 states where Americans will face at least 50% capital gain tax under this plan. If the Biden plan passes, for the taxpayers caught by the new rule, here are the combined state and federal rates taxpayers might pay on their capital gains:
California 57.9 percent;
New York 55.5 percent;
New Jersey 55.5 percent
Minnesota 55.45 percent;
Oregon 54.5 percent;
Maine 51.75 percent;
Nebraska 50.44 percent;
Idaho 50.4 percent;
Iowa 50.3 percent;
Kansas 50.3 percent; and
Georgia 50.09 percent. ...