Biden's capital gains tax proposal could crush the economy, experts say

resident Biden's latest proposal to hike the top capital gains tax rate to its highest level in more than a century is facing heavy criticism from experts who warn such an action could significantly harm the U.S. economy.

According to a report issued by the Treasury Department, led by Secretary Janet Yellen, the president's proposed fiscal year 2025 budget would increase the top marginal rate on long-term capital gains and qualified dividends to a staggering 44.6%. A capital gains tax hike of that magnitude would take the rate to its highest level since it was first introduced in the early 1920s.

"Investment is the real driver of economic growth," E.J. Antoni, an economist and research fellow at The Heritage Foundation, told Fox News Digital. "Investment is what gives you productivity gains. Investment is where you get factories and machines — it's where businesses are able to provide their workers with tools and equipment that allow them to increase their productivity, to increase wages, etc."

"If you're going to tax something, you get less of it," he continued. "And that's just as true for investment as it is for anything else. Taxing capital gains means less investment, it means less economic growth, and it means the rise in people's standards of living is going to slow dramatically."

The Treasury Department's report states that the 44.6% rate is a combination of proposals, including increasing the top ordinary capital gains rate from 20% to 37%. The bulk of the tax hikes impact Americans with taxable income greater than $1 million.

But Antoni, who argued such a tax hike would have broad economic impacts, further noted that inflation impacts the price of equities, such as stocks. That means a tax on gains when equities are sold also taxes inflation.

As I posted on a similar thread, I have a much better idea:

Let’s tax @ 100% any gain of income politicians make after taking office, unless that income is derived from producing a useful product or service, in which case the tax goes to 10% added to what they would already pay: Lawyers, lobbyists, etc., and basically anyone connected with politics, do NOT get this reduction. A lady who runs a regional bus company, serves in Congress for 2 terms, and then “retires” back to running her bus company, DOES get the deduction in taxation of her gain. There is no added tax on the person’s yearly income before they ran for office, and that portion of their income IS indexed to Federal inflation stats.

We are only taxing the gain.

(This will need some refinement - it is an initial proposal.)

Prepper Ping - The resident's economic policies on taxation will kill American enterprize
Add Federal taxation along with the State tax structure on capital gains, and it would put the economy into a tailspin, and create a recession.

(From the article):" According to a report issued by the Treasury Department, led by Secretary Janet Yellen, the president's proposed fiscal year 2025 budget
would increase the top marginal rate on long-term capital gains and qualified dividends to a staggering 44.6%.
A capital gains tax hike of that magnitude would take the rate to its highest level since it was first introduced in the early 1920s."

"Investment is the real driver of economic growth," E.J. Antoni, an economist and research fellow at The Heritage Foundation, told Fox News Digital.
"Investment is what gives you productivity gains. Investment is where you get factories and machines
— it's where businesses are able to provide their workers with tools and equipment that allow them to increase their productivity, to increase wages, etc."

""If you're going to tax something, you get less of it," he continued. "And that's just as true for investment as it is for anything else. (Emphasis Mine)
Taxing capital gains means less investment, it means less economic growth,
and it means the rise in people's standards of living is going to slow dramatically.""

"The Treasury Department's report states that the 44.6% rate is a combination of proposals, including increasing the top ordinary capital gains rate from 20% to 37%.
The bulk of the tax hikes impact Americans with taxable income greater than $1 million."

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