Biden's Proposed Capital Gains Tax Hike: What You Need to Know

Nearly Doubling the Rate

President Biden's Fiscal Year 2025 budget proposal includes a controversial measure that would nearly double the capital gains tax rate for wealthy individuals. The current rate of 20% would jump to 39.6%, a move that has sent shockwaves through the financial community.

Impact on Long-Term Investments

The proposed tax hike would primarily affect individuals with long-term capital gains, such as those who sell stocks or real estate held for more than one year. Currently, these gains are taxed at the lower 20% rate, but under Biden's proposal, they would be subject to the same rate as ordinary income.