Biden aims to nearly double capital gains taxes above $1m to pay for child care and education
Latest White House plan doesn't include broader health care reforms
The New York Times reports:
The next phase of President Biden's $4 trillion push to overhaul the American economy will raise taxes on millionaire investors to fund education and other spending plans, but it will not take steps to expand health coverage or reduce prescription drug prices, according to people familiar with the proposal.
The plan seeks to extend through 2025 a monthly payment from the government for most families temporarily created by the $1.9 trillion economic aid package from March.
On the tax side, the proposal is for a top marginal income tax rate to 39.6% from 37% and capital gains for those earning more than $1 million to 39.6% from 20.0%.
That capital gains provision could be a factor in the stock market. If it doesn't take effect right away and rather in 2022, then there will be enormous selling pressure in stocks before year-end 2021 to take advantage of it. My guess is that it will apply to 2021 though, so there's no point in selling now.
Other tax provisions regarding the estate tax and capping dedications on the wealthy are also in play.