- Aug 4, 2000
House Democrats have proposed legislation that could end Trump tax cuts for the wealthy and corporations. If passed, this could implement some of the biggest tax increases in decades. But while these tax changes aim to make good on President Joe Biden’s promises to tackle inequality, they are smaller-scale in an effort to win over moderate Democrat support. The new plan proposes raising the top capital gains tax rate from 20% to 25% instead of nearly doubling it to 39.6% as Biden had initially proposed. And the corporate tax rate would only go up to 26.5% instead of 28%. Let’s break down how these tax changes could affect you A financial advisor may be able to help with tax planning. SmartAsset’s free advisor matching tool can match you with financial advisors in your area.
What Was Originally Proposed?
Initially, President Biden laid out a variety of tax proposals that included increasing the top capital gains tax rate from 20% to 39.6%. With the high earner Medicare surtax of 3.8%, the top rate would become 43.4%. Under his original plan, both short-term and long-term capital gains would be taxed the same way, with the top income tax bracket featuring a rate of 39.6%.
We dont have a tax problem, we have a spending problem. Cut back on profligate federal spending by 10% across the board and that will be a start.
Joe's idea? Raise taxes so we can spend even more! Anytime you hear a democrat throw around the word "invest" - run for the hills!