The economy has once again crashed. On Thursday, President Joe Biden’s announcement caused the stock market to fall once again.
Biden proposed another massive tax increase and revealed that he would be raising capital gains tax on individuals who earn over $1 million to 39.6%. That’s a massive increase, as the current minimum capital gains tax rate for the wealthy is only 20%.
Additionally, Bloomberg reported that “net investment income tax” would be kept in place at a 3.8% surcharge on investment income. Since former President Obama had put this tax in place to raise revenue for the Affordable Care Act, it is unlikely for Biden and his administration to get rid of it.
Of course, most of this is not a surprise as Biden had already talked about these taxes during his campaign trail. Biden’s American Families Plan is expected to need $1.5 billion, but Bloomberg reported that his plan would be paid by the higher-income earning individuals’ higher taxes.
As former President Donald Trump correctly predicted, “If he’s [Biden] elected, the stock market will crash.”