Calm down, not everyone will be taxed by Biden - Kakiforex.com - Financial Market Media No. 1 in the World Calm down, not everyone will be taxed by Biden Calm down, not everyone will be taxed by Biden
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April 26, 2021

Calm down, not everyone will be taxed by Biden

 The issue of the capital gains tax hike, which has sparked chaos in financial markets last week, is said to be targeted at only a small fraction of the high-income group, a senior Biden administration official told the Financial Times on Monday.


According to the source, only 0.3% of people who file taxes in the U.S. will be taxed higher on their investments.


This is in line with previous reports that said Biden suggested those earning more than $ 1 million a year would be taxed. According to Bloomberg News, which cites IRS data from 2018, 0.3% of Americans report earning more than $ 1 million in capital gains.



This week, U.S. President Joe Biden is expected to unveil a tax hike plan, including a nearly double -digit profit and dividend collection to fund a new package of education and childcare spending that could reach $ 1.5 trillion.


The current tax on capital gains and dividends is set at 20%. Still, under the new plan, it would be considered ordinary income at the highest rate Biden would like to set at 39.6%, up from 37%.


In addition to the increase in investment income introduced by Barack Obama in connection with his health care reform, this would bring the U.S. tax rate on capital gains and dividends to 43.4%.


Earlier, President Biden had received fierce criticism from Wall Street and Silicon Valley following reports he would raise taxes on the high -income group.