Biden wants a 43.4% Capital Gains Tax By: noreply@blogger.com (John Lott)

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It will be over 55% if you live in NY, Calif. Inflation makes it worse, and can easily result in negative investment returns. Say inflation is 100% over 20 yrs & your house increases in price from $200K to $500K. At 55%, the capital gains tax is $165K. After tax return $135K, but you need at least a $200K return to cover inflation. So you are actually going to lose money on this investment. Even a 33% capital gains tax will mean that you make no return on your investment. From the WSJ:

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The midday leak to the Biden-sympathetic Bloomberg News managed to tank stocks, with the S&P 500 falling the most in more than a month. Treasury yields also fell on the news, as investors discounted the prospects for growth. Nothing like higher taxes to take some of the bloom off the “Biden boom,” as Democrats are now calling the post-Covid economic recovery.

The leakers told Bloomberg that Mr. Biden will tax capital gains for taxpayers who earn more than $1 million at the personal income tax rate, which he also wants to raise to 39.6% from 37%. Add the 3.8% ObamaCare tax on investment, and you get to 43.4%. And that’s merely the federal rate. Add 13.3% in California and 11.85% in New York (plus 3.88% in New York City), which also tax capital gains as regular income, and you are heading toward the 60% rate range.