Joe Biden’s proposed capital gains tax hike will impact Californians earning over $400,000

SAN DIEGO (KUSI) – Many stocks sharply dropped to new session lows Thursday after Bloomberg reported President Biden is eyeing a capital gains tax as high as 43.4%.

Bloomberg says under Biden’s proposal, “people earning $1 million would pay 39.6% plus Obamacare levy,” and “total tax rates for New Yorkers and Californians could top 50%.”

For Californians, the combined state and federal capital gains rate could be as high as 56.7%

According to Bloomberg, “Biden is expected to release the proposal next week as part of the tax increases to fund social spending in the forthcoming ‘American Families Plan.'”

KUSI Contributor Sully Sullivan says Biden’s plan will impact those making $400,000 or more, not $1 million or more. Sully is against the massive tax hike, “we are officially in the business of penalizing success, and penalizing retirement savings. Honestly.”

Adding, “here’s the other piece of it that you have to understand here. There is an existing surtax on investment income for the wealthy, which brings the whole thing up to 43.4% for the wealthy, so bottom line, for million dollar earners in California, your tax rate is going to be 56.7%, that’s pretty ugly.”

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Categories: California News, Good Morning San Diego, National & International News, Politics