Biden plans retroactive hike in capital-gains taxes, so it may be already too late for investors to avoid it: report

Xiden’s proposed budget for the upcoming fiscal year assumes that a hike in the capital-gains tax rate took effect in late April, meaning that it already would be too late for high-income investors to realize gains at lower tax rates, according to a Wall Street Journal report out Thursday citing people familiar with the proposal.

Xiden plans to increase the top tax rate on capital gains to 43.4% from 23.8% for households with income over $1 million, though Congress must OK any hikes and retroactive effective dates, the report added.

Some analysts predicted any rise in capital-gains taxes will not end up being retroactive.

“Given that Xiden’s capital-gains tax proposals face headwinds already, we think it is unlikely that Congress will make them retroactive as well. That would be adding insult to injury,” said James Lucier, managing director at Capital Alpha Partners, in a note.

Separately, a New York Times report said Xiden plans to propose a $6 trillion budget on Friday that would take the U.S. to its highest sustained levels of federal spending since World War II.

Documents obtained by the Times show that Xiden’s first budget request as president calls for total spending to rise to $8.2 trillion by 2031 as he aims to upgrade the nation’s infrastructure and substantially expand the social safety net, that newspaper’s report added.

(Excerpt) Read more at marketwatch.com

This is a mugging by a thug. How can anyone with a conscience sanction taking close to half of someone's income? It's gangsterism. Even the Godfather would not stoop so low. At least he had some honor.
I say this even though it won't affect me other than the sorrow it generates, a sorrow for a country our Founding Fathers would not recognize.
In my honest opinion this should really only affect people who are worth more than around $20 million and then a slight marginal raise on up into the billionaires .....but no . We leave it to the Democrats to screw it up. And it should also vary for each state or region according to the cost of living of each area. ( if you live in New York City or Los Angeles a million dollars doesn't go quite as far as it does in Fayetteville Arkansas or Columbus Ohio. )
Biden's proposed doubling capital gains taxes for investors making over $1 million affects only .3% population. The first million of income is excluded from the proposal. I expect the actual bill will have a number of exclusion such as sale of a person primary residence, small farms an businesses and for married couples, 2 million a year in income.

Much ado about nothing. It will not past the Senate and possibility not even the House. To have any chance at all, that 1million would probably have to be changed to 10 million.
 

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