“increasing the highest marginal tax rate to 39.6 percent, applying this same rate to capital gains for households with over $1 million in income”
The rich will simply set up online banks and borrow on their shares at say 1% a year instead of paying 39.6% tax to the feds (and ~10% more to ‘rat-run states for a total of nearly 50%).
If Jeff Bezos had merely borrowed on the shares he sold in past years, he would be a richer man today.
People will always finds ways to get around these onerous government rules.