Joe Biden's plan to punish equity investors
Presumptive Democratic presidential nominee Joe Biden has partially spelled out his economic agenda. He has said he plans to increase the corporate tax rate to 28 percent from 21 percent, a 33 percent tax hike.
Such a hike would encourage offshoring by U.S. companies, and the losers would include U.S. workers who are out of a job and investors such as 401K equity-holders.
His agenda includes a more progressive personal income tax system with the taxation of capital gains and dividends at ordinary tax rates for higher income households and the elimination of the step-up basis for capital gains.
His economic agenda would likely include application of the 12.4 percent payroll tax on incomes earned over $400,000, but with no additional benefits to those paying the new tax. For 2020, the 6.2 percent rate is paid on earned income up to $137,770. The progressive wing of his party may like to have the 6.2 percent applied to unearned income, but that feature may not be part of Biden’s initial economic agenda.
Presumptive Democratic presidential nominee Joe Biden has partially spelled out his economic agenda. He has said he plans to increase the corporate tax rate to 28 percent from 21 percent, a 33 percent tax hike.
Such a hike would encourage offshoring by U.S. companies, and the losers would include U.S. workers who are out of a job and investors such as 401K equity-holders.
His agenda includes a more progressive personal income tax system with the taxation of capital gains and dividends at ordinary tax rates for higher income households and the elimination of the step-up basis for capital gains.
His economic agenda would likely include application of the 12.4 percent payroll tax on incomes earned over $400,000, but with no additional benefits to those paying the new tax. For 2020, the 6.2 percent rate is paid on earned income up to $137,770. The progressive wing of his party may like to have the 6.2 percent applied to unearned income, but that feature may not be part of Biden’s initial economic agenda.