Posted on 04/22/2021 12:25:26 PM PDT by SeekAndFind
Stocks fell sharply Thursday afternoon after a Bloomberg report that President Joe Biden is hoping to hike the capital gains rate to as much as 43.4%, sounding an alarm for investors concerned over the potential toll on trading profits.
As of 2:10 p.m. Eastern, the Dow Jones Industrial Average was off 368 points, or 1.1%, to 33,770, erasing a 0.9% rally Wednesday and pushing the index deeper into negative territory for the week.
Meanwhile, the S&P 500 and tech-heavy Nasdaq also fell about 1.1% apiece, putting each of the major indexes on track for a third day of losses this week as corporate earnings begin to show signs of economic weakness.
According to Bloomberg, Biden's proposed tax of 43.4% would lift the base capital gains rate, which is levied against profits from the sale of investments, to 39.6% from 20%—as previously reported—for individuals making more than $1 million annually, but it also bundles in the existing Obamacare tax of 3.8% on certain capital gains.
The report, published shortly after 1 p.m., immediately tanked stocks, which were roughly flat for the day beforehand.
CRUCIAL qUOTE:
"Wall Street hit the panic button and headed for the sidelines" after the report, Oanda Senior Market Analyst Edward Moya said in a Thursday afternoon note, adding that the plan could mean a 56.7% and 56.2% total capital gains tax in California and New York respectively. "Sticker shock over some of these tax figures will be hard to shake off for some investors."
Biden's set to release additional details on his tax plan for individuals next week, Vital Knowledge Media Founder Adam Crisafulli said in a Thursday email. "This isn't positive, but it's also not new… There is still a long road ahead though before any of this becomes law," says Crisafulli,
(Excerpt) Read more at forbes.com ...
Good they didnt vote for President Trump because of his mean tweets, pay up with a smile
If there are no gains, no tax. Funny how that is.
—
The new proposed insanity is to tax *unrealized* gains.
This is interesting. I wonder how the Billionaire Oligarchs feel about this? I guess we can assume, since Gods and Demigods all live on Mt. Olympus, that they might get an Olympian tax break. To spur the economy, of course.
Money laundering for the DeeperDemos. That’s all this is. Meanwhile, They want Patriots DEAD.
Their thievery was way more widespread than the few areas you mentioned.
This was industrial scale theft involving multiple levels of thievery.
They want to take ALL your money. That’s what they call “paying your fair share”.
And then kill you.
[Wall Street wanted Biden, they got him.]
If we listen to Joe Biden, we can fix this!
When then (1929) Stock Market Crash happened...
FDR didn’t go on TV and talk about the princes of greed!
If you are in for the long haul you don’t have to worry about capital gains.. unless the DemonRats start taxing investments you haven’t sold.. and I’m not talking about dividends.
The democrats are doing their best to wreck the economy.
I thought it was weird that we rallied 20% post election.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.