Washington, Aug 13: The flagship climate change and health care bill passed by Democrats and soon to be signed by President Joe Biden will bring US taxpayers one step closer to a government-operated electronic free-file tax return system. It’s something lawmakers and advocates have been seeking for years. For many Americans, it’s frustrating that beyond having to pay sometimes hefty tax bills, they also have to shell out additional money for tax preparation programmes or preparers because of an increasingly […]
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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.
Biden eyeing capital gains tax as high as 43.4pc for wealthy
Laura Davison and Allyson Versprille
Apr 23, 2021 â 5.41am
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Washington | President Joe Biden will propose almost doubling the capital gains tax rate for wealthy individuals to 39.6 per cent to help pay for a raft of social spending that addresses long-standing inequality, according to people familiar with the proposal.
For those earning $US1 million ($1.3 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, the people said on the condition of anonymity because the plan is not yet public.