Biden Tax Hike Would Hit Half a Million Highest Earners

That’s the number of filers who reported taxable incomes of $1 million or more to the IRS for 2018, potentially making them subject to a hike in the capital gains tax proposed by President Joe Biden. 

Biden plans to recommend a change in the tax code that would almost double the current capital gains tax to 39.6% for people who have adjusted gross incomes of $1 million or more, Bloomberg reported Friday. The tax, which people pay when they sell investments and valuable assets like stock, real estate and jewelry they’ve held for more than a year, currently maxes out at 20% on capital gains above income of $496,600 for married couples filing jointly and $441,450 for individuals. 

During the presidential campaign, Biden had promised to double the capital gains tax rate for those making $1 million or more as part of a series of reforms aimed at “rewarding work, not just wealth.”