May 18, 2021

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Mortgage News

Biden mulling 100% tax hike

Leaks from the White House have shown that President Biden could propose an increase in capital gains tax to 39.6%, which for some taxpayers would mean an increase of nearly 100%.

Bloomberg reports calculated that the new rate for those with high incomes and high wealth could reach 43.4%. The Dow has already fallen significantly in the news.

If it did go into effect, this tax hike would turn the US tax system on its head, which currently tax higher income than returns on capital. Details are expected to be revealed that should provide better insight into the potential impact on housing construction, particularly the real estate investment investment market.

The plan would serve to fund part of Biden’s American Families Plan, which could cost up to $ 1 trillion after $ 1 trillion in infrastructure and the COVID-19 pandemic went into effect.

In some states, that tax hike would mean Americans who earn over $ 1 million annually would pay more than half of their tax income.

“In his view it is [infrastructure and childcare investment] can stand on the backs of the richest Americans who can afford it and corporations and corporations who can afford it, ”said Jen Psaki, White House press secretary. “His view, and that of our business team, is that this will not have a negative impact.”