US President Joe Biden intends to propose raising the tax rate on capital gains for the rich almost twice, to 39.6%. About it writes Bloomberg with reference to the sources familiar with plans of the head of state.
Kyiv. Ukraine. Ukraine Gate – April 23, 2021 – International News
According to the interlocutors of the agency, Biden wants to raise the tax in order to cover most of the social costs, which are aimed at eliminating inequality. Now the tax rate for Americans with an annual income of $ 1 million or more is 20%.
For those earning at least $ 1 million, the new maximum rate combined with the existing income tax on investment income means that federal tax rates for wealthy investors can reach 43.4%.
According to the interlocutors of the agency, the investment income tax of 3.8%, which finances programs under the health care reform Obamacare, will be maintained, which will increase the rate of return on financial assets higher than the rate of some income from salary.
Biden’s proposal, according to the agency, may repeal the old provision of the tax code, according to which the income tax on investment is lower than on labor. Bloomberg recalled that the US president had previously advocated equalizing capital gains tax rates and income taxes for the rich, pointing to the injustice of many of them paying lower rates than middle-class workers.
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Source: Ukrgate
