Hours after the NYT published its report about the details of Biden’s “human infrastructure plan,” Bloomberg followed up with a series of headlines that sent markets reeling: Biden is set to propose a capital gains tax as high as 43.4% for the wealthiest Americans. For context, the top rate is currently 23.8%.
- BIDEN TO PROPOSE CAPITAL GAINS TAX AS HIGH AS 43.4% FOR WEALTHY
- PROPOSAL WOULD MEAN 52.22% TOTAL CAPITAL GAIN LEVY IN NY STATE
- TOP RATE WOULD BE PAID BY THOSE MAKING MORE THAN $1 MILLION
Markets puked on the news, likely because – as we explained earlier – expectations of a higher cap gains rate would incentivize investors to sell to lock in their gains before the higher rate takes effect. Of course, if the tax is retroactive to 2021, then there’s no point in selling because it would already be too late to lock in a lower rate.
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The NYT has just published the first “official” leak detailing the outline of President Biden’s “American Family Plan”, the second part of his administration’s signature “Build Back Better” proposal (the first part, entitled the “American Jobs Plan”, was unveiled during a live press briefing in Pittsburgh earlier this month).
The second phase of Biden’s sweeping “Green New Deal”-inspired program centers on what administration officials call “human infrastructure”.
Should it pass in its current form, it would entail spending hundreds of billions of dollars on universal pre-kindergarten, expanded subsidies for child care, a national paid leave program for workers and free community college tuition for all.– READ MORE
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