Economy
Biden’s Proposed Top Tax Rate on Capital Gains, Dividends, Would Make U.S. Highest in ‘Developed World’
Biden’s tax proposal would raise the top federal rate on long-term capital gains and qualified dividends from 20% to 39.6%
Biden’s tax proposal would raise the top federal rate on long-term capital gains and qualified dividends from 20% to 39.6% for taxpayers with annual income over $1 million, reports CNBC. The Biden administration is targeting the richest Americans because they are often able to manipulate the tax system in their favor, said a White House official.
The proposed top federal tax rate of 39.6% on long-term capital gains and qualified dividends would make the U.S. the highest in the developed world. With average state taxes and a 3.8% federal surtax, the wealthiest people would pay almost 49% total, according to CNBC. Only Ireland has a higher top rate with 51% on dividends. But when it comes to capital gains, the U.S. would claim the highest top rate.
Some of the wealthiest individuals often receive income from capital income like interest, dividends and capital gains. A recent ProPublica report found Warren Buffett, Jeff Bezos, Michael Bloomberg and Elon Musk all pay little to no taxes compared with their wealth.
According to the Tax Foundation, “the top rate high-earning Americans pay on dividends and the sale of appreciated assets would jump to nearly 49%, when combining all federal and state taxes.”
CNBC notes the caveat to this analysis is that Biden’s suggested top U.S. rate would “apply to relatively few taxpayers each year” therefore “it’s difficult to compare tax burdens across countries due to extreme variation in certain details” when “other developed countries impose their top tax rate on a broader pool of people.”
Biden’s proposal “is part of a broader plan to raise taxes for households making more than $400,000 a year, to help fund domestic initiatives that largely benefit the low and middle class” states CNBC.
Senior policy analyst Garrett Watson at the Tax Foundation says the U.S. capital gains tax regime is progressive compared to other countries. However, U.S. states vary greatly in how they tax capital gains and dividends. CNBC reports:
For example, residents of Alaska, Florida, Nevada, South Dakota, Tennessee, Texas, Washington state and Wyoming wouldn’t owe additional state tax on capital gains, according to the Tax Foundation.
Their top rate under Biden’s proposal would be 43.4% (which includes the 39.6% federal rate and the 3.8% net investment income tax). By comparison, California, New York, and New Jersey would have combined rates of more than 54% for the wealthiest residents.
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Blue Boomerang
June 22, 2021 at 9:27 am
Translation: Biden is really going after the well paid, work-a-day, white ‘professional class’. Households making over $400K/year? C’mon man. That’s chicken shit. That’s not Jeff Bezos or Zuckerberg or Musk or Bloomberg or Gates or Buffett, et al who are ‘centi-billionaires’ and pay nothing in income tax but ‘have the Democrat party in their pocket’! Biden is a mere ‘tax and spend’ liberal Democrat (are there any other kind?) looking out for his ‘identity politics’ voting base of coloreds and queers. He’s out to ‘get’ conservative, Christian, ‘white guys’ who are MAGA supporters, work for a living, pay their taxes and don’t complain until they are cornered by race baiting, white hating, race hustling black anarchists.
Susan Ball Winterscheidt
June 22, 2021 at 10:51 am
He and his buddies are off their rockers. Do they not realize how we retired folks will be doubly affected. We rely on our capital gains and dividends for the few extras in our lives. Just WHAT is problem–of course, realizing how mentally incompetent Biden is, what can be done. PRAY we vote RED come mid-term.
Carolyn Jones
June 22, 2021 at 12:32 pm
Who in hell (and that’s where he’s going)does Biden think he is??? Evidently a king over his subjects? Everyone I know hates to get up each day wondering what devastation will happen, knowing that something even more catastrophical, to doom all of us. This tyrant puppet and whoever is telling him what to do next are adamant that we, the serfs, feel more lost with each passing day. After all, ol’ sippy cup Joe (Sean Hannity’s nickname) will do what they say: he wanted to be president sooo desperately that he made a deal with the devil that he would carry out any malevolent, radical plan just to be king of the “Evilites”. He’s so afraid that he’ll “get in trouble”, o say “I am not supposed to answer that question”. I thought, he is the fraudulent president— he will get in trouble????? He is, you know an empty suit with no cognitive ability, right? He’s unable to do anything without his trusty words to read (by Rice, et al), or his cards ( you know, the ones he read from in that “Summit” with Putin, who had to hide his amusement and was salivating over what other goodies he could snatch away from the insipid ass Biden, in addition to the highly lucrative pipeline Biden gave Russia. Remember? Biden closed ours, which had made the U. S. lose the money, jobs, and independence our beloved SMART, President Trump gave us. Which side is Biden on? Doesn’t that make ol’ Joe a traitor? We have gone from a Trump Utopia to HELL itself.
McRant
June 23, 2021 at 9:58 am
Firstly, I find it demeaning to be called the middle and low ‘class’ people. It is the middle and low income people. Slow Joe showing his racism again.
Secondly, we have around 360 million people in the US. Only 180 million people pay any taxes at all. The people who don’t pay taxes are 65 million seniors/disabled on Soc.Secur, 45 million children, prisoners, minimum wage earners, people on public assistance including illegal aliens,most single moms,the unemployed, the basement dwellers, the homeless, those in shelters, and out lower-ranking military families. That’s taxpayers who pay their own taxes plus absorb the tax burdens of the poor.
The upper 10% of taxpayers already pay 70% of the entire country’s tax burdens. They are already paying much more than their ‘fair share’ of taxes.
Thirdly, I’d I owned a successful corporation or manufacturing plant, and I knew my taxes were going to double, I would move my company out of the US to a tax-friendly nation like the Cayman, hire cheap labor and make tons more money. The US government gets nothing and employees lose jobs and benefits. Great plan, financial wizard Gropes.
And for you ‘low class people’, say your parents die. Their house, bought in the 60s for $14, 000, is now worth $180,000. Whee, a big break except you pay outrageous death taxes of up to 50% of the asset value.
This is the great reset. Moving money and property from the middle/working income levels and giving more to the poor. The poor are happier, but now entitled. We are really pissed off because we worked for these things.We’re all serfs for the elite class: Soros, Clintons, Obamas, Comey, Brennan, fake news experts,the DOJ,the CIA, too military brass, the ‘entertainment industry’s, the public school system, teachers, unions.
Dems lie about COVID, masking (100% inerrective against SARS type respiratory infections COVID which Fauci, knew from the start. In fact, masks are actually harmful both mentally and physically,especially for children.
All a Marxist scam to steal the America.
Mary
June 23, 2021 at 11:29 pm
I agree with all of the comments made before me. Biden is a Bimbo Bobble Head.