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.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.