The eleven states facing 50% capital gains tax because of Biden

The eleven states facing 50% capital gains tax because of Biden

Story by Katelyn Caralle, U.S. Political Reporter For Dailymail.Com In Washington, Dc

Full Article here

If Joe Biden is successful in passing his massive capital gains tax rate hike, Americans in 11 states will next year be paying over 50 percent of some of the profits when they sell off their assets to the government.

The president’s 2025 budget proposal includes increasing the top marginal rate on long-term capital gains dividends to 44.6 percent mark, which is the highest ever since the tax was implemented a century ago.

The current rate sits below 25 percent – so the increase represents a significant hike. 

Many economic and tax experts agree that raising the capital gains tax this high would dis-incentivize investing and hurt the U.S. economy, despite the Biden administration claiming they are only trying to tax the rich.

‘The Biden administration may think they are going after the ‘super wealthy’ with this proposal, but the opposite will be true,’ Dan Savickas, the Director of Policy for Taxpayers Protection Alliance, told 

All states besides seven have additional taxes on capital gains and a few would see their total top rate exceed 50 percent when selling off investments and assets.

California would by far have their residents paying the highest top rate with a combined 57.9 percent. 

New York and New Jersey are tied for second with 55.5 percent combined capital gains tax rate.

‘Consequently, we could possibly see an unintended domino effect, where capital is moved overseas and used to invest and grow outside of the U.S.,’ he said in a statement on the capital gains proposed hike.

Zackon added: ‘There will definitely be an aftershock from implementing the highest capital gains tax in U.S. history and the world.’

Capitol Gains Tax by Biden

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