Comparison of Proposed Capital Gains Tax Policies by Biden and Trump

Potential Impact of Proposed Capital Gains Tax Policies

President Biden's recent budget proposal unveiled plans for a substantial increase in the capital gains tax rate, causing concern among investors. The proposal aims to introduce a new maximum rate of 44.6%, significantly higher than the current rate.

Comparison to Historical Tax Rates

• The proposed capital gains tax rate under Biden's plan surpasses historical rates, including the original 7% and the 1921 maximum of 12.5%. It also exceeds the rate set during Trump's term, which was capped at 20%.

Trump's Capital Gains Tax Plan
In contrast, Trump's capital gains tax proposal aims to decrease the maximum rate to 15%, aligning with his previous term's rate. However, the feasibility of implementing such a decrease could be hindered by the country's escalating public debt.

Uncertain Future
While the specifics of capital gains taxation under a potential second Trump administration remain unclear, it is suggested that Biden's unrealized gains tax proposal may not materialize if Trump were to take office.