Apr 26, 2021 - Politics & Policy

Top Biden economic adviser confirms plan to double capital gains tax

Biden sits at a table with Deese
President Biden in the Roosevelt Room on April 12. Photo: Amr Alfiky-Pool/Getty Images

Brian Deese, director of the National Economic Council, formally announced President Biden's plan to nearly double the capital gains tax as a means to fund massive economic proposals at Monday's White House press briefing.

Why it matters: Deese stressed that Biden's proposal to raise federal taxes on sold assets and investments would not affect most households.

  • Biden wants a 39.6% top rate on long-term cap gains, up from the current 20% rate, for those earning at least $1 million of annual investment income, Axios' Dan Primack reports.
  • An ACA-related investment tax would bring the federal toll to 43.4% for top earners.
  • The administration is now preparing for negotiations with Capitol Hill.

What he's saying: "This change will only apply to three-tenths of a percent of taxpayers, which is not the top one percent," he said. "It's not even the top one-half of one percent. We're talking about three-tenths of a percent. That's about 500,000 households in the country that we're talking about."

  • "For the typical Americans, most of their income comes from wages, so for people making less than a million dollars a year, about 70% of their income comes from wages," he said.
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