Biden seeks to hike the top rate on capital gains to 43.4% from 23.8% for households with income over $1 million.
He also wants to make the increase retroactive and force capital gains realization at death as well.
- Leaders of six biggest U.S. banks, testified to Congress Thursday warning against a retroactive change.
- Sen. Mark Warner (D., Va.), wants to maintain a lower tax rate for capital gains than for ordinary income.
- Lawmakers from farm states, including Sen. Jon Tester (D., Mont.) and Rep. Cindy Axne (D., Iowa) have objected to the changes on capital gains at death.
Now and Later
Biden wants to make it retroactive so that millionaires cannot accelerate gains now. And he wants to make gains taxable at death to prevent heirs from holding.
In short, Biden wants his tax hikes now and later too.
He continues to appease the Progressives.
Lie of the Day From Biden: My Budget Will Pay for Itself
Earlier today I noted Lie of the Day From Biden: My Budget Will Pay for Itself.
Treasury Secretary Janet Yellen says the budget is sustainable because long-term yields are below the rate of inflation, conveniently held there by the Fed.
The budget also assumes no recession for at least another 9 years despite the fact they happen about every 5 years on average.
Finally, Biden's budget not only assumes retroactive tax hikes but those hikes will bring in more money than the nonpartisan congressional budget office assumes.
Biden's Budget Headed Nowhere
There is bipartisan support for about $900 billion in infrastructure spend, far short of the $2.3 trillion Biden seeks.
There is no bipartisan support for tax hikes.
Moreover, Biden cannot afford to lose a single Democrat Senator on any issue, but the net impact of all his tax and budget proposals suggests he has lost at least 3 Senators.
His budget and tax hikes are headed to the gutter. Beyond infrastructure, it's unclear if Biden can pass anything.