An increase would help pay for the massive spending package.
Majority members in the House of Representatives are looking to increase the tax rate on capital gains as one of several mechanisms to raise trillions of dollars for their spending package. They are currently proposing that the capital gains rate for high-income individuals be increased from 20% to 25%, a number that falls short of President Biden’s initial pitch to hike the rate by nearly double to 39%. By raising the rate on investment income for people making over $1 million, they would hope to raise $123 billion.
They are exploring other tax hikes as well. They want to increase the top tax rate on individuals making over $400,000 per year to 39.9%, up from the current 37% rate. This would also apply to married couples filing jointly who earn over $450,000. A proposal to increase the corporate tax rate to 25% from 21% is also a scaled-back version of the White House’s proposal.
As the Lord Leads, Pray with Us…
- For wisdom for members of Congress as they consider the expense of the budget bill.
- For representatives and senators who are hearing from their constituents about the package.
- For negotiators seeking ways to pay for the speaking bill.
Sources: Washington Examiner, Wall Street Journal
