Biden FY25 Budget Proposal Seeks Capital Gains Tax Hike
Proposed Increase Aims to Double Tax Rate for Wealthy Investors
Implications for High-Earners and the Market
In a significant proposal included in the Fiscal Year 2025 Budget of the United States Government, President Joe Biden has put forth a plan to nearly double the capital gains tax rate for certain investors. The move has sparked discussions about its potential impact on high-earning individuals and the investment landscape.
The proposed increase would affect long-term capital gains, which are currently taxed at a lower rate than ordinary income. Under the President's plan, that rate would rise to 39.6% for individuals earning at least $1 million from capital gains.
Under current law, the top capital gains tax rate is 20% for those with taxable income over $518,900. Biden's proposal, if enacted, would significantly increase that rate to 44.6%, factoring in state taxes.
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