Stock market drops as Biden considers nearly 50% capital gains tax rate
President Biden’s rumored plan to tax capital gains at a top rate of 43.4% likely contributed to a drop in stock values.
President Joe Biden and his cadre of far-left political advisers are pushing to raise the capital gains tax rate to nearly 50 percent, and the news appears to have led to a drop in stock values.
He “will roll out a plan to raise taxes on the wealthiest Americans, including the largest-ever increase in levies on investment gains,” Reuters reported on Thursday.
The tax hike will allegedly be used “to fund about $1 trillion in childcare, universal pre-kindergarten education and paid leave for workers.”
“The proposal calls for increasing the top marginal income tax rate to 39.6% from 37%,” Reuters said. “It would also nearly double taxes on capital gains to 39.6% for people earning more than $1 million.”
Other reports said the capital gain tax rate could reach 43.4 percent.
As another blow to the economy and hard-working Americans, the Biden news led to a drop in stock prices, harming retiree investment and other American’s retirement accounts.
“The three main indexes on Wall Street also fell on reports that Biden planned to raise income taxes on the wealthy, a proposal some said would be hard to pass in Congress,” according to a Reuters article posted on Nasdaq.com.
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