The Biden administration has unveiled plans to raise taxes on millionaires, according to a series of recent reports. President Joe Biden wants to reform the U.S. economy to help fund American child care and education programs. Biden’s proposal would nearly double the current 20 percent tax rate on capital gains to 39.6 percent, and for some investors the tax rate could be as high as 43.4 percent.
The capital gains tax rate for the wealthy could rise to 43.4%
Immediately after proposing new stimulus measures to strengthen the U.S. economy, President Joe Biden also wants to raise the tax rate for the wealthy above $1 million. The capital gains tax increase will almost double for some individuals, at 43.4%.
Any post that reveals a power gain issue comes from people who are aware of the offer but wish to remain anonymous. Currently, the capital gains tax in the United States is about 20%, and the marginal tax rate of 39.6% is reserved for wealthy Americans.
The proposed increase in the capital gains tax?
I hear Puerto Rico is beautiful this time of year. ….
– Jameson Lopp (@lopp) April 23, 2021
In addition, a capital gains tax of 3.8% would be combined with a tax of 39.6% to help fund Obamacare. Biden began speaking in the first week of April about a sweeping overhaul of the tax code, in which his administration hopes to raise $2.5 trillion in revenue over 15 years.
As soon as the stock markets opened Thursday afternoon, traders began selling stocks and bonds. Ten-year Treasuries fell and stocks like the S&P 500 Index also suffered some losses Thursday, but stocks and bonds rebounded Friday morning.
Bitcoin (BTC) and a number of crypto assets also suffered some losses after tax news began to spread. BTC dropped from a high of $55,186 on Thursday to a low of $47,555 at 3:45 a.m. Friday. BTC is currently trading just below $50k and the only crypto asset that has not yet been routed is Ethereum (ETH). Jeffrey Halley, senior market analyst, Asia-Pacific, OANDA, said the decline in the BTC was due to Biden’s tax reform proposal.
Bitcoin headed south today after President Biden indicated he wants to raise capital gains taxes in the US, Hulley said Friday. Whether that happens or not, many bitcoin investors are likely to be sitting on significant capital gains if they maintain the same price as last year. I am convinced that regulation and/or taxation in developed markets remains the Achilles heel of the cryptocurrency market.
The crypto economy has also rebounded since Thursday’s revelations about tax increases, but many digital assets have yet to fully recoup their losses.
We can most likely attribute bitcoin’s steep decline to the fact that US investors will have to pay a capital gains tax if they sell the cryptocurrency after owning it for more than a year, while reports indicate that President Biden is considering doubling the tax for the wealthy, said Don Guo, CEO of Broctagon Fintech Group, in an email to Bitcoin.com News. Moreover, investors will see the drop in the cryptocurrency market as an opportunity to expand their portfolios by increasing average investment spending and buying new altcoins like Ethereum, the executive added.
Goh added a comment:
Therefore, as with bitcoin, a further decline is unlikely, as large companies will see this as an opportune time to start buying bitcoin at relatively low prices.
White House spokesman says plans are not yet ready
President Biden spoke during the campaign about his efforts to increase capital gains for the wealthy. Opponents of the idea have complained that a million dollars doesn’t necessarily make a person rich these days. Critics say it will be a burden on those without significant wealth and that the very rich will only find loopholes. White House press secretary Jen Psaki brought up tax reform during her briefing Thursday, quickly responding to a reporter’s question.
We are still working on salaries, Psaki told reporters. Meanwhile, Republicans are fighting over the tax cuts enacted by former President Trump and may try to let the proposal run its course. The Biden administration also wants to raise property taxes for the wealthy. Americans earning $400,000 or more a year can pay more in taxes to fund the American Jobs Plan.
What do you think about Joe Biden and his administration trying to increase capital gains for people with a million dollars or more? Let us know what you think in the comments below.
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