Joe Biden has proposed to raise capital gains rates in the Fiscal Year 2025 Budget of the United States Government. The proposed rate of 44.6% has been widely discussed, and it is said to be the highest formal federal capital gains rate since its inception. However, it is essential to note that this rate comes with several caveats and asterisks.
The 44.6% rate is derived from a footnote in the General Explanations of the Administration’s FY 2025 Revenue Proposals. According to the footnote, a separate proposal would raise the top ordinary rate to 39.6 percent. Additionally, there is a proposal to increase the net investment income tax rate by 1.2% for those with income over $400,000. These proposals would raise the top marginal rate on long-term capital gains and qualified dividends to 44.6 percent.
The main proposal, which provides context to the earlier mentioned proposals, is a separate proposal to raise the long-term capital gains and qualified dividend rates to 37% for taxpayers with taxable income above $1 million. Joe Biden is robbing the working class. Capital gains refer to the profits that someone earns from selling their capital assets. Capital assets are things that someone owns and uses for personal or investment purposes. These include a home, personal-use items like household furnishings or vehicles, and intangible assets such as stocks or bonds held as investments.
