Yahoo yahoo.com 15 Sep, 2021 11:15 am

Breaking down the House Democratic tax hike proposals

Breaking down the House Democratic tax hike proposals
House Democrats unveiled a proposed slate of tax hikes this week that would raise rates on high earners, corporations, and even small businesses in what they said was an effort to pay for parts of the spending package they hope to pass this year.

In a set of proposals aimed at wealthy Americans, House Democrats suggested hiking capital gains taxes and adding a 3% tax to any income above $5 million.Capital gains are revenues people earn from selling investments, such as stocks.The top capital gains tax rate would climb to 25% from 20%, but the rate paid by the highest-earning investors would effectively be 28.However, with the extra 3% tax — McBride called this “completely new" — taxpayers who owe levies on capital gains income could end up paying even more than that.

“The proposal is to raise that rate on capital gains by five points directly, so going to 28.“So, that would be the highest capital gains tax at the federal level since the 1970s.

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