In order to pay for his ambitious plans for infrastructure, climate, and anti-poverty measures, President Biden promised to raise taxes on the wealthiest Americans. Now, the details of those increases, which have yet to be formally announced, are coming into focus. And they’re great news for middle-class earners who could gain to get a lot more out of their government in terms of social services, like child care, education, and universal pre-k.
Bloomberg reports that Biden’s plan would double the capital gains tax rate to 39.6 percent for the wealthy. Coupled with the existing 3.8 percent surtax on investment income that helps fund the Affordable Care Act, wealthy investors could pay as much as 43.4 percent on the profits when they sell stocks.
Who Do The Tax Hikes Affect?
How Much Money Would The New Rules Raise?
estimated $370 billion over the next decadeclose the