In 2012, Senator Chuck Schumer (D-NY) rejected doubling the capital gains tax rate to 39.6 percent, the same rate that President Joe Biden is expected to soon propose. As Schumer noted:
“Now, if you are returning the top income rate to Clinton-era levels, as I have proposed, I do think it is too much to treat capital gains the same as ordinary income. We don’t need a 39.6% rate on capital gains.”
As reported by Bloomberg, President Biden will soon propose doubling the capital gains tax rate to 39.6 percent. When combined with the Obamacare surtax on investment income, the top federal tax rates will be 43.4 percent.
This is the highest rate since 1977 during the Jimmy Carter era, when the top rate was 39.875 percent.
Inclusive of state taxes and the 3.8 % Obamacare tax, Californians would face a capital gains rate of 56.7%, New Yorkers would face a capital gains rate of 52.2%, New Jerseyans would face a capital gains tax rate of 54.14%.