A policy group this week warned that the U.S. Department of Treasury’s proposed budget could significant increase taxes for certain Americans, namely those paying capital gains taxes.
The budget called for a record high 44.6 percent capital gains tax rate, which some have noted would be the highest rate proposed since the tax was created in the 1920s.
“The rate disparity between taxes on capital gains and qualified dividends on the one hand, and taxes on labor income on the other, also encourages economically wasteful efforts to convert labor income into capital income as a tax avoidance strategy,” President Joe Biden’s proposed budget said….