A 43.8% capital gains tax rate is coming.
That’s right – president Biden is eyeing a new tax increase that would raise the tax rate as high as 43.8%. We reported this information late last year and it’s leaking to the media now. The new proposed tax hike would raise the top capital gains tax rate to 43.8% (Cap Gains + NIIT)
There are three rates for capital gains: 0%, 15%, and 20%.
We do not have details on the implementation of the tax increase, and we still don’t know if this will take effect in 2021 or 2022. While some say it won’t pass, it’s likely that something similar will go into effect.
As we saw with the ARP, the proposed bill was very similar to the original version with no significant changes to note.
Do you have any significant capital gains? If so, are you concerned about all the changes coming across?
Compare and Contrast
Compare the current 2021 law to the proposed new tax law.
Current Law – no asterisk
Proposed Biden Law – asterisk (*)
Corporate Tax Rate
Capital Gains Top Rate
Top Individual Income Tax Rate
6.2% Stops At $137,700
6.2% Continues over $400,000*
Top Effective Rate On Pass-Through Income
Estate Tax Rate
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