After floating the idea to raise the corporate tax rate, US President Joe Biden now wants to increase taxes for rich investors to cover his massive infrastructure plan.
Reports about new capital gains tax hikes shook US stock markets on Thursday, sending major indices lower. The Biden administration could potentially increase the capital gains rate to 43.4% for households earning at least $1 million.
RT’s Boom Bust spoke to Joseph Gissy, founder and CEO of Strategy Marketplace, to discuss how the move may affect the stock market.
He said Biden was “going after the individual investor, kind of a wealthy investor,” adding that successful stock market players may pay around 50% more in taxes from their capital gains.
“This will clearly put us in the lead for the highest corporate and the highest individual income tax on capital gains in the entire world,” Gissy said.
The analyst believes that the recent rally in the stock market has not completely burned out, but investors still should be cautious, in part because of these increased tax rates on the horizon.
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