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April 29, 2021 4:50 PM
Chris Davis
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President Joe Biden on Wednesday unveiled a plan to increase capital gains taxes, and the numbers back up what the administration has been saying for some time: Unless you make a lot of money, you probably won’t feel any direct impact from the proposed changes.
But if you earn more than $1 million per year, listen up.
Under the proposal, the highest income tax rate would return to 39.6% (where it stood from 2013 to 2017), up from the current 37%. Along with that increase, the Biden administration’s plan would tax capital gains — profits from the sale of certain assets or investments — at the same rate as ordinary income for households earning more than $1 million, and that’s where the biggest change would happen.