Capital Gains Tax Hike to Affect Fraction of American Taxpayers

The highly anticipated increase of the capital gains tax in the United States would only impact 0.3% of American taxpayers, according to Brian Deese, the Director of the National Economic Council, Reuters reported.

“We need to do something about equalizing the taxation of work and wealth in this country.”

“And that’s why the reforms that the president will lay out are focused on this top sliver of people.”

The administration of U.S. President Joe Biden plans the tax hike to fund additional government spending.

The plan involves nearly doubling the tax rate on capital gains for those making more than $1 million a year from a current base rate of 20% to 39.6%. The tax hike will be coupled with the current surtax on investment income.