President Joe Biden's proposal to increase the top capital gains tax rate could be the highest such tax rate in over a century.

In his 2025 budget proposal, Biden outlined plans to elevate the top marginal rate on long-term capital gains and qualified dividends to 44.6%. This rate, if enacted, would surpass any seen in over a century, according to Americans for Tax Reform (ATR). 
Moreover, the combined federal-state rate could exceed 50% in several states when factoring in state capital gains taxes. For instance, California residents would potentially face a 59% rate, while those in New Jersey, Oregon, Minnesota, and New York could confront rates ranging from 53.4% to 55.3%, according to ATR.

Critics of the proposal argue that capital gains taxes, particularly when not indexed to inflation, impose a form of double taxation and disproportionately affect certain demographics. Small business owners, for example, may find themselves grappling with inflated tax liabilities on gains that are partly attributable to inflation rather than real profit.

Furthermore, comparisons with other nations highlight the potential ramifications of such a steep increase. China, for instance, maintains a capital gains tax rate of 20%, significantly lower than Biden's proposed rate. The prospect of imposing higher taxes than a major economic competitor raises concerns about the impact on investment and economic competitiveness.

The history of the capital gains tax underscores the magnitude of Biden's proposal. Initially introduced in 1922 at a rate of 12.5%, the tax has evolved over the decades but has never approached the proposed levels.
Additionally, Biden's plan includes measures to address tax implications upon inheritance, potentially adding further complexity to the tax code. The proposal to eliminate a stepped-up basis upon the transfer of assets upon death could result in a mandatory capital gains tax event, affecting families' financial planning and estate management.
"When someone dies, and the asset transfers to an heir, that transfer itself will be a taxable event, and the estate is required to pay taxes on the gains as if they sold the asset," said Howard Gleckman, senior fellow in the Urban-Brookings Tax Policy Center, CNBC reported.

The budget proposal, which calls for approximately $5 trillion in tax increases over the next decade, has drawn mixed reactions from lawmakers and experts alike. While some argue that such measures are necessary to fund various social programs and infrastructure projects, others express concerns about the potential adverse effects on economic growth and investment.

So cutting spending is completely of the table then...

Absolute insanity.

Despite the burdensome income tax the self-sufficient, responsible citizen manages to invest a portion of his/her income. Now, the feral gov't wants to more than double their cut of the investments.

Worse of all, we all know most the additional tax revenue will be diverted to the dependent and irresponsible.

Absolutely criminal.

Fuck the raisin. At some point I’m going to sell my house and move to a metal building and I’m not paying this shit. Ridiculous.

Since they hate small business and owners, and want to deny generational wealth to the peons and serfs (anyone except the fraction of a percent elite) this makes perfect sense.

At the same time it beholdens the true serfs even more tightly to the state.

All the while exempting themselves from this tax increase Im sure.

quote:

Originally posted by 1s1k:
Absolutely criminal.

Can't disagree.

I hope he pushes that shit hard.

I know a few who voted for him that this proposed rate would negatively impact.

Maybe it could be a long overdue wake up call.

quote:

In his 2025 budget proposal, Biden outlined plans to elevate the top marginal rate on long-term capital gains and qualified dividends to 44.6%.

That's crazy. It's not incompetence... it's destructive.

Biden's inflation tax has already done enough damage. Inflation is a hidden tax. If the dollar you worked to earn can't maintain its purchasing power, you have to work more or buy less. It lowers your standard of living.

If you want to save some of your dollars for use later you have to be able to stay at least even with inflation in order for it to make sense to save.

Raising the rate on long-term capital gains and qualified dividends to 44.6% would wipe out any incentive or reason to save. After taxes you would likely not keep pace with the inflation Biden has unleashed.

Does anyone see a solution short of war?

The Crony class seems to have taken up the mantle of Oppressor from the Inbred Morons.

It’s no secret here that I think tax and spend policies, policies that involve printing money in the trillions and devaluing the dollar, will eventually collapse the economy with all of the destruction that comes with it. Of all the elements threatening the culture, collapse is the most sure to happen since those in power have no will to prevent it. It appears to me that the only solution is to not need the economy. To develop a self sufficient life wherever possible and have a surplus of all necessities is not only prudent but the less we engage the economy, the more we starve government of tax money, the more we insulate ourselves from those scatecephalics.

The latest economic reports are indicating GDP growth is down to an annual 1.8%. When figuring in the inflation created by Biden's policies, this is actually a negative number.

Adding this new level of confiscation to the mix would definitely kill any chance of an economic turnaround under the Pedo-in-Chief, and cement the landslide that even the DNC cannot out-cheat in November. Do it, Brandon. Do it.


.

quote:

Adding this new level of confiscation to the mix would definitely kill any chance of an economic turnaround under the Pedo-in-Chief, and cement the landslide that even the DNC cannot out-cheat in November. Do it, Brandon. Do it.

Yeah, it's horrible policy... but I think you underestimate the number of people who are gullible to the "pay your fair share" and "sock it to the rich" narrative.
Brandon needs a way to fire up his useful idiots.

quote:

Originally posted by chellim1:

quote:

Adding this new level of confiscation to the mix would definitely kill any chance of an economic turnaround under the Pedo-in-Chief, and cement the landslide that even the DNC cannot out-cheat in November. Do it, Brandon. Do it.

Yeah, it's horrible policy... but I think you underestimate the number of people who are gullible to the "pay your fair share" and "sock it to the rich" narrative.
Brandon needs a way to fire up his useful idiots.

To reinforce chellim's point, here is an excerpt from May 2023 Nerd Wallet article:

quote:

Existing emergency funds may come up short. Less than half (45%) of Americans would be able to cover a $1,000 emergency expense without turning to a credit card or loan, according to the survey.

Millions of Americans are missing out on retirement accounts. An estimated 155.6 million (60%) Americans lack a retirement-specific savings account. This includes half of baby boomers (ages 59-77), 56% of Generation X (ages 43-58), 66% of millennials (ages 27-42) and 73% of Generation Z (ages 18-26).

These people are unlikely to change their vote based on doubling the capital gains tax.

Is there a link to this story? Did I miss it somewhere?

quote:

Originally posted by 6guns:
Is there a link to this story? Did I miss it somewhere?

No, you didn't. The OP did not include a link to the story.

If this doesn't include a hike in the $250/$500k exemption for cap gains on the sale of a home, it's gonna crush the RE market and pinch a lot of people. Hell, we're almost at the point where we'd be past the $500k exemption if we sold. At that point, if cap gains goes to 46%, we'd never sell - just borrow some equity, buy elsewhere and then rent the current house out. That would dry up inventory quickly.

This has Obama's greasy fingerprints all over this, I doubt Joe Biden himself even knows what this even means now. Remember how Obama wanted all this during his two terms? Now he's trying to get it through via his puppet.