President Joe Biden is coming for your money and your retirement.
Biden and the Democrats are planning on raising the top income tax rate and the corporate income tax rate. Now, they are coming for your retirement as well.
President Joe Biden will propose almost doubling the capital gains tax rate for wealthy individuals to 39.6%, which, coupled with an existing surtax on investment income, means that federal tax rates for investors could be as high as 43.4%, according to people familiar with the proposal.
Capital gains taxes are paid on profits earned or appreciation from selling assets such as stocks or homes.
Truth be told there aren't many people who earn income over $1 million (including capital gains).
The reality, like it or not, is people with money fuel economic activity including funding investment in companies. Higher taxes will have a trickle-down impact as high-income earners look to invest money elsewhere. That will impact everyone who wants to use the market as a way to fund retirement.
The market is the only way to effectively fund retirement in America.
In high tax states, the damage is even worse.
For $1 million earners in high-tax states, rates on capital gains could be above 50%. For New Yorkers, the combined state and federal capital gains rate could be as high as 52.22%. For Californians, it could be 56.7%.
Democrats somehow think taxing a small portion of the nation's highest earners can pay for their massive expansion in government. No doubt, this Biden capital gains tax increase plan is an attempt to punish high-earning executives who receive stock options as part of their compensation.