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US President Joe Biden will propose almost doubling the capital gains tax rate for wealthy Americans to 39.6 per cent to help pay for a raft of social spending that addresses long-standing inequality.
For those earning $1 million or more, the new top rate, coupled with an existing surtax on investment income, means that federal tax rates for wealthy investors could be as high as 43.4 per cent.
The new marginal 39.6 per cent rate would be an increase from the current base rate of 20 per cent, sources told Bloomberg.
A 3.8 per cent tax on investment income that funds Obamacare would be kept in place, pushing the tax rate on returns on financial assets higher than rates on some wage and salary income, they said.