Cardano

Biden

Gold

Gains

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 <p class="paragraph">President Biden has formally suggested the <a rel="noopener noreferrer nofollow" title="highest" href="https://thebittimes.com/tag/highest.html">highest</a> top capital gains tax rate in over a century.</p>
 <p class="paragraph">According to the proposal, the top marginal rate on long-term capital gains and qualified dividends would rise to 44.6%. This could significantly impact the financial returns of investors in stocks and crypto.</p>
 <figure class="wp-block-image size-full"><img decoding="async" width="631" height="440" src="https://cdn.thebittimes.com/images/2024/04/24/0bb5cea1ed3de9b74a0665a0ab998b25.webp" alt="Biden's proposed capital gains tax hike. Source: Americans for Tax Reform
" class="wp-image-171255" srcset="https://cdn.thebittimes.com/images/2024/04/24/0bb5cea1ed3de9b74a0665a0ab998b25.webp 631w, https://cdn.thebittimes.com/images/2024/04/24/0bb5cea1ed3de9b74a0665a0ab998b25.webp 300w" sizes="(max-width: 631px) 100vw, 631px">
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   Biden’s proposed capital gains tax hike. Source: Americans for Tax Reform
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 <p class="paragraph">In many states, the combined federal-state capital gains tax under Biden’s plan would exceed 50%.</p>
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 <p class="paragraph">Additionally, the capital gains tax is not adjusted for inflation, which adds another layer of complexity to the proposed tax increase.&nbsp;</p>
 <p class="paragraph">Capital gains taxes often result in double taxation, mainly from investments in stocks, stock mutual funds, or stock ETFs. This tax is an additional layer on top of the current federal corporate income tax rate of 21%.</p>
 <h2 class="wp-block-heading" id="h-how-will-gains-from-stock-be-impacted">How will gains from stock be impacted?</h2>
 <p class="paragraph">Currently, the capital gains tax rate for long-term investments, assets held for over a year, tops at 20%. Capital gains represent the profits earned from selling or trading an asset.&nbsp;</p>
 <p class="paragraph">The applicable tax rates for these gains vary based on factors such as the type of asset, your taxable income, and the duration of ownership before selling.</p>
 <p class="paragraph">President Biden’s fiscal year 2025 budget proposal aims almost to double this capital gains tax rate to 39.6%. This proposed increase would affect investors earning at least one million dollars annually.</p>
 <h2 class="wp-block-heading" id="h-crypto-taxes-will-get-updated-as-well">Crypto taxes will get updated as well</h2>
 <p class="paragraph">The 2025 budget, incorporating the new Capital Gains Tax, <a rel="noopener noreferrer nofollow" title="proposes" href="https://thebittimes.com/tag/proposes.html">proposes</a> eliminating a special tax subsidy for <a rel="noopener noreferrer nofollow" title="crypto" href="https://thebittimes.com/tag/crypto.html">crypto</a>currency and other transactions.&nbsp;</p>
 <p class="paragraph">Currently, cryptocurrency investors enjoy different rules compared to investors in stocks or other securities, which can lead to reporting of excessive losses. For instance, a cryptocurrency investor can sell their assets at a loss, claim a significant tax deduction to reduce their tax liability and repurchase the same cryptocurrency shortly afterward.&nbsp;</p>
 <p class="paragraph">The Budget aims to end this tax subsidy for <a rel="noopener noreferrer nofollow" title="crypto" href="https://thebittimes.com/tag/crypto.html">crypto</a>currencies by updating the tax code’s anti-abuse rules to treat <a rel="noopener noreferrer nofollow" title="crypto" href="https://thebittimes.com/tag/crypto.html">crypto</a> assets similarly to <a rel="noopener noreferrer nofollow" title="stock" href="https://thebittimes.com/tag/stock.html">stock</a>s and other securities.</p>
 <p class="paragraph">This means that in addition to paying the same capital gains tax as stock traders, crypto investors won’t be able to benefit from the special tax subsidy.</p>
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<p>Source: <a rel="noopener noreferrer nofollow" target="_blank" href="https://thebittimes.com/biden-proposes-highest-capital-gains-tax-in-over-100-years-for-stocks-and-crypto-tbt86341.html">https://thebittimes.com/biden-proposes-highest-capital-gains-tax-in-over-100-years-for-stocks-and-crypto-tbt86341.html</a></p>

Biden proposes highest Capital Gains Tax in over 100 years for stocks and crypto

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