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US stock market plunges: Biden plans to double capital gains tax for the rich

Schedule S&P 500 at intervals of 1 minute

President Biden plans to almost double the capital gains tax rate for wealthy people who earn over $ 1 million a year: from the current 20% to 39.6%, Bloomberg writes, citing informed sources. This, coupled with the existing tax on investment income, would mean a federal tax rate for investors at 43.4%.

According to Bloomberg sources, the 3.8% tax on investment income that finances the Obamacare program will remain in place.

If all this happens, then in states with high taxes, wealthy investors will pay more than 50%, writes Bloomberg. For example, in New York, the combined rate of local and federal taxes on capital gains may be 52.22%, and in California – even 56.7%.

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