Our Committee to Unleash Prosperity analysis of the Biden soak the rich tax plan finds that tax rates on investment income – such as stock gains – could rise to the preposterous level of more than 80% on millionaire investors.
The Biden soak the rich plan would:
- Raise the small business tax rate to 39.6%
- Raise the corporate tax rate to 28%
- Nearly double the capital gains rate to 44.6%
- Impose a first-ever tax on unrealized capital gains
- Tax gains due solely to Biden inflation
The combination of all these taxes, plus state taxes on income and dividends could mean that the government would snatch away $4 out $5 of gains made on investments of more than $1 million.
What rich person would put money at risk in a new enterprise – which might easily fail – with tax penalties this high. The rich would be better off buying a yacht and sailing away.