Democrat presidential candidate Joe Biden said he’d like to raise the capital gains tax to 39.6 percent, a near doubling of the current 20 percent.
Biden made the remarks on Wednesday, August 21 during an interview with Iowa Public Television:
“I believe we should, in fact, the capital gains tax should be at what the highest minimum tax should be, we should raise the tax back to 39.6 percent instead of 20 percent,” Biden said yesterday.
Per Fortune, former Vice President Joe Biden would double the rate to 40% for people with incomes of $1 million or more. Senator Bernie Sanders and several other White House aspirants support taxing capital gains and dividends the same as income from work. The general idea is being cheered on by Bill Gates, the billionaire co-founder of Microsoft Corp., who said in a February television interview that “the big fortunes, if your goal is to go after those, you have to take the capital gains tax” and “increase that.”
6. What might the Trump administration do?
The White House is considering directing the Treasury Department to index capital gains to inflation, which would slash tax bills for investors when selling assets. (Their original purchase price would be adjusted upward with inflation, minimizing the “gain” on which they are taxed.) That would amount to a tax cut worth more than $100 billion over a decade.
The change has been a longtime goal of Trump’s top economic adviser, Larry Kudlow, who has said the policy would spur job creation and economic growth because people wouldn’t be taxed on what he’s called “phantom income.” To pursue that proposal, the White House would need to sidestep Congress, which has the sole authority to cut tax rates.
This article was written by the staff of TheConservativeOpinion.com