Hi welcome back, I am Holly and you are watching kalkine tv live from Sydney. This is the Economic Corner – where we update you on all the biggest global economic announcements. First up is an important update coming in from the United States. US President Joe Biden is expected to propose doubling the capital gains tax rate for wealthy individuals to 39.6%.
The existing surtax on investment income and the raising of capital gains tax, means that federal tax rates for investors could be as high as 43.4%. As per reports, the plan is expected to boost the capital gains rate to 39.6% for those earning $1 million or more, which will be an increase from the current base rate of 20%. A 3.8% tax on investment income that funds Obamacare would be kept in place, pushing the tax rate on returns on returns on financial assets higher than rates on some wage and salary income. So, there are a lot of tax burdens expected to be coming in for wealthy Americans.