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Are Capital Gains Taxes Changing? Thumbnail

Are Capital Gains Taxes Changing?

Taxes Advising Trending

There are a lot of questions being asked about Biden’s Build Back Better plan and potential tax law changes, including an adjustment to capital gains taxes. These capital gains taxes will not only be detrimental for the "wealthy", which they deem as households making over $400,000, but also start to effect individuals in lower wages. 

One of the proposals Congress is considering sets the top rate for taxing capital gains at 25%, up from 20% under current law. Another would raise the capital gains tax rate to 39.6% for taxpayers earning $1 million or more. Still another would make the change to capital gains tax retroactive, with a start date of April 2021. This tax increase would allow the velocity of money to slow down, creating a negative impact on the lower class. When you start taxing the people that create jobs and goods more, they have less money to pay their employees, offer raises, and hire new employees. 

At this point, many ideas are being considered as legislators look for ways to raise revenue to help pay for the Build Back Better plan. Corporate tax rates, individual tax rates, estate tax rules also are on the negotiating table.

If you have questions about any of these topics, please reach out to us. You can schedule a 30 minute meeting today!

  1. https://www.bloomberg.com/news/articles/2021-09-13/house-democrats-pitch-capital-gains-tax-of-25-for-high-earners
  2. https://www.bloomberg.com/news/articles/2021-06-16/yellen-argues-capital-gains-hike-from-april-2021-not-retroactive

This content is developed from sources believed to be providing accurate information, and provided by Twenty Over Ten. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security.