PHILADELPHIA, PA - MAY 18: Former U.S. Vice President and Democratic presidential candidate Joe Biden speaks during a campaign kickoff rally, May 18, 2019 in Philadelphia, Pennsylvania. Since Biden announced his candidacy in late April, he has taken the top spot in all polls of the sprawling Democratic primary field. Biden's rally on Saturday was his first large-scale campaign rally after doing smaller events in Iowa and New Hampshire in the past few weeks. (Photo: Getty)
President Joe Biden proposed on Friday amending the federal capital gains tax from 20% to 39.6% to help fund new child care and education initiatives expected to be revealed in his new American Families Plan education and infrastructure bill.
Capital gains tax applies only to Americans earning more than $1 million from investments in a calendar year and will most directly affect Wall Street and how much tax must be paid on an equity trade. Biden’s new proposal had an immediate effect on the stock market as the S&P 500 dropped 1% after the announcement despite having been on a steady incline for the past week.
Experts believe the Biden proposal is a starting point of negotiations with Republicans and will likely round out closer to 30% when the American Families Plan is proposed. The new education plan is expected to expand child care subsidies, make community college tuition-free and expand measures to teach U.S. workers new trades and skills.
On the campaign trail, Biden pledged to eliminate special treatment for capital gains earners, instead counting investments as traditional income.
Subscribe to our free weekly newsletter!
A week of political news in your in-box.
We find the news you need to know, so you don't have to.
Comedian Amber Ruffin slammed the Trump administration yet again after she was cut as the…
President Donald Trump signed an executive order directing Vice President JD Vance to work to…
President Donald Trump has fired White House National Security Council (NSC) staffers after being encouraged…
https://youtu.be/KjtUgU3K7Aw Former Vice President Kamala Harris swiped at Elon Musk after a Democratic-backed candidate won…
President Donald Trump placed tariffs on almost 90% of nations, including some uninhabited areas, during…
https://www.youtube.com/shorts/t4Yuj5JQkT8 Supporters of President Donald Trump cheered as he unveiled a sweeping set of tariffs…