are you rich? Biden wants to double your capital gains taxes and introduce a wealth tax

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new taxes

While social issues have dominated news coverage recently, one of the most contentious and important issues in Washington never changes – tax policy. One of former President Donald Trump’s biggest victories was his 2017 tax plan There has been a huge reduction in taxes for wealthy Americans and corporations. Now, President Joe is trying to roll back some of those changes and introduce some new policies of his own. Two of the biggest proposals presented in his recent budget were big hikes for a long time capital gains tax And a new tax on the wealthiest Americans.

To help find out how these changes will affect you and your family, consider working with a financial advisor,

Capital Gains Tax Proposal

capital gains Is it money would have had from selling or trading an asset – for example, if you bought 100 shares of a stock at $10 per share and sold it five years later at $20 per share, what would you have made? The $1,000 transferred is a capital gain. Whereas short-term capital gain – referring to property sold within a year of purchase Currently taxed as regular income At the federal level, long-term capital gains, those held for at least one year, have a special rate. The top right now is 20%.

Biden’s plan calls for nearly doubling that top rate to 39.6%. It’s worth noting, though, that this rate would only apply to investors who earn at least $1 million per year.

Biden’s wealth tax

biden new taxes

new taxes

One of the brand new initiatives in Biden’s budget is a minimum tax for the wealthy, whereas most taxes in the US are based on income, this tax would be based on net worth – thus, it is commonly referred to as “a” is done.wealth tax,

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plans to establish a minimum tax rate of 25% for all households with at least $100 million in assets. Currently, the wealthiest pay an average effective rate of just 8%, so this would be a radical change for the elite of the wealthy – and potentially generate a lot of money for the coffers of the federal government.


President Joe recently proposed a new budget with a myriad of potential changes to the way taxes are collected in the US. Among the changes aimed at scooping up more money from the very wealthy are setting a minimum tax rate of 25% for households with at least $100 million in assets and nearly doubling the top rate for capital gains. Both of these ideas have only been proposed by the president — and with the GOP now in charge of the House, it will be a long road full of compromises to the budget.

Financial Planning Tips

  • To navigate the ever-changing world of taxes, it’s a good idea to get professional help with your finances. Finding a Financial Advisor Shouldn’t be difficult. of SmartAsset free tools Matches you with three certified financial advisors serving your area, and you can interview your advisor matches for free to decide which one is right for you. If you are ready to find an advisor who can help you achieve your financial goals, get started now,

  • Use SmartAsset’s to find out what your tax bill could be this year free tax calculator,

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