Democrats just cannot stop raising taxes.
Their latest proposal would increase the top capital gains tax rate to 35.8% from the current 23.8%. This would impose the highest capital gains tax since 1978, the stagnant Jimmy Carter era.
See the chart below:
A 35.8% capital gains tax rate would saddle the USA with a much higher burden than our competitors.
China has a 20% rate.
The European average capital gains tax is 17.9%.
Under the Democrat proposal, to be introduced by Sen. Chris Van Hollen (D-Md.) the combined federal-state capital gains tax rate will exceed 40% in many states.
Van Hollen’s constituents in Maryland would face a 47.6% combined top capital gains tax rate.
Californians would face a 49.1% combined top capital gains tax rate.
The Democrats are moving in the wrong direction. The existing capital gains tax burden is already too high. Capital gains are not indexed to inflation, so Americans are stuck paying tax on some “gains” that are nothing more than inflation — something created by Washington and then taxed by Washington. The Joe Biden-induced high inflation makes this especially painful.
Many hard working couples who started a small business at age 25 who now wish to sell the business at age 65 would have to give 35.8% of the “gains” to the IRS, plus the state capital gains tax.
SEE ALSO:
30 Conservative Groups Urge Trump to Index Capital Gains
Trump on Capital Gains Indexing: “It can be done directly by me.”
Trump Can Help Middle Class by Ending the Inflation Tax on Capital Gains
