Taxes
Biden Eyeing Tax Rate as High as 43.4% in Next Economic Package
- People earning $1 million would pay 39.6% plus Obamacare levy
- Total tax rates for New Yorkers, Californians could top 50%
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President Joe Biden will propose almost doubling the capital gains tax rate for wealthy individuals to 39.6% to help pay for a raft of social spending that addresses long-standing inequality, according to people familiar with the proposal.
For those earning $1 million or more, the new top rate, coupled with an existing surtax on investment income, means that federal tax rates for wealthy investors could be as high as 43.4%. The new marginal 39.6% rate would be an increase from the current base rate of 20%, the people said on the condition of anonymity because the plan is not yet public.