US President Joe Biden plans to raise taxes for the rich.
It is doubtful that the top income tax bracket will rise to 39.6%, while taxes on capital gains will increase.
In the United States, the Biden administration will propose a tax increase to provide the necessary funding under the American Families Plan.
According to news in The New York Times, Biden will use his tax revenue for areas such as childcare and education, which are electoral promises.
Those who earn more than a million dollars will have their taxes doubled
In the US, the top income tax bracket is set to be raised to 37 percent, with Donald Trump’s tax reform to 39.6 percent.
And for those who earn more than $ 1 million, doubling the capital gains taxes is also on the agenda.
Accordingly, the percentage will increase from 20% to 39.6%.
It is mentioned that this figure could rise to 44% when combined with an existing additional tax on investment income.
A sharp drop in the markets
After the news, there was a sharp drop in both stock indices and cryptocurrency markets.
Biden said on the campaign trail that it was unfair for the wealthy to pay less than middle-class workers.
He promised to equalize capital gains and income tax rates for wealthy individuals.