Darrow Wealth Management
Biden's Proposed Capital Gains Tax Hike
Impactful Storytelling
In his Fiscal Year 2025 budget proposal, President Biden has proposed nearly doubling the capital gains tax rate to 39.6%. This proposed increase would apply to investors with incomes over $1 million. The current capital gains tax rate is 20% for most assets held for more than a year. This proposed change would significantly impact investors, particularly those who hold assets for the long term.
Long-Term vs. Short-Term Capital Gains
Currently, long-term capital gains are taxed at lower rates than ordinary income, while short-term capital gains are taxed as ordinary income. The proposed change would increase the capital gains tax rate for long-term capital gains to 39.6%, which is the same rate as ordinary income for high-income taxpayers.
Darrow Wealth Management
Comments