According to a new report from the Wall Street Journal President Biden’s budget is said to assume a capital gain tax rate that is retroactive and would place late April of this year as the start date.
According to the report “Mr. Biden’s plan would raise the top tax rate on capital gains to 43.4% from 23.8% for households with income over $1 million. He would also change the tax rules for unrealized capital gains held until death.”
“The effective date for the capital-gains tax rate increase would be tied to Mr. Biden’s announcement of the tax increase as part of his American Families Plan, which includes an expanded child tax credit and funding for preschool and community college. He detailed the plan April 28, and the budget will be released Friday,” the report explains.
Meanwhile, leaders of six biggest U.S. banks, testifying to Congress Thursday, each warned against a retroactive change to the capital-gains tax. Those opposed to the plan plan warn it could hurt economic growth by penalizing successful investment gains.
The plan must still be approved by Congress, and some moderate Democrats such as Joe Manchin have signaled they may oppose measures he considers too extreme.