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(Proposed Increase: 2021)

Current Rate: Long-term capital gains tax is 20%.

Proposed Rate: Increase to 39.6% for individuals earning over $1 million annually. (Tax Policy Center).

Affected Taxpayers: Impact on about 0.3% of taxpayers, or 500,000 households (IRS).

(Further Insights)

Total Estimated Impact: About 78% of the increase affects the top 0.1% (Institute for Policy Studies).

(Proposed from 2021 onward)

Estimated Revenue: Projected to generate $370 billion over ten years, or $37 billion annually (Joint Committee on Taxation).

Revenue Impact: Funding for healthcare, education, and infrastructure for millions (CBO).

Healthcare Funding: An additional $37 billion could expand coverage for 2 million uninsured (CBO).

(Further Insights)

Infrastructure Investments: Could create 1 million jobs over ten years (American Society of Civil Engineers).

(Proposed from 2021 onward)

Wealthiest 1% Share: Nearly 40% of capital gains income goes to the top 1%, totaling $1.15 trillion in 2023 (Federal Reserve).

Average Capital Gains Income: Top 1% reported about $1.1 million (IRS).

Comparison with Ordinary Income: Middle-income earners face an average tax rate of 25% (Economic Policy Institute).

(Further Insights)

Growth in Capital Gains: Top 1% capital gains rose 300% from 2000 to 2022, while the bottom 90% saw only 50% (Piketty & Saez).

(Proposed from 2021 onward)

Capital Gains Share for Top 0.1%: Nearly 75% of income for top earners comes from capital gains (NBER).

Investment Response: Tax increase may cause a 30% decrease in asset sales, resulting in $50 billion less annually (Tax Foundation).

Market Liquidity Concerns: Could negatively affect 150 million American investors (Brookings Institution).

(Further Insights)

Private Equity Impact: A 25% drop in private equity deals might mean $15 billion less for startups (PitchBook).

(Proposed from 2021 onward)

Top 10% Stock Ownership: About 89% of stocks are owned by the top 10%, worth around $30 trillion (Federal Reserve).

Bottom 50% Ownership: Only 1% of stock assets are held by the bottom half (Federal Reserve).

Wealth Disparity Metrics: Top 1% owns more wealth than the bottom 70%, affecting 230 million Americans (Institute for Policy Studies).

(Further Insights)

Income Growth Rates: From 1980 to 2022, the top 1% income grew 300%, while the bottom 90% saw only 30% (Piketty & Saez).

(Proposed from 2021 onward)

Middle-Class Households with Investments: About 12 million households, or 22%, are middle-income families with investments (Pew Research Center).

Direct Impact of Tax Increase: Less than 0.5% of middle-class households would be affected, around 60,000 families (Pew Research Center).

Investment Behavior: Only 8% of middle-income families earn over 10% from capital gains (Urban Institute).

(Further Insights)

Retirement Accounts: Roughly 40% hold retirement accounts, unaffected by the tax (National Bureau of Economic Research).

(Proposed from 2021 onward)

Support for Tax Increase: About 62% of Americans support raising taxes on the wealthy (Gallup).

Opposition Concerns: About 54% of economists say the tax might discourage investment and slow growth, affecting 75% of workers (American Economic Association).

Wealth Tax Comparison: 60% of progressive voters favor a wealth tax for the ultra-rich (Data for Progress).

(Further Insights)

Political Party Views: 78% of Democrats support the tax increase, while 35% of Republicans do (Pew Research Center).

(Proposed from 2021 onward)

States with High Wealth Concentration: California, New York, and Massachusetts may see capital flight. California's top earners pay an effective tax of 33% (Institute on Taxation and Economic Policy).

Potential Migration: About 1.5 million high-income earners may move to no-tax states like Florida and Texas (Tax Foundation).

State Budget Impacts: States raising capital gains taxes could lose high earners, impacting budgets reliant on income tax (National Conference of State Legislatures).

(Further Insights)

Tax Revenue Loss: Losing 1 million high-income residents could cost California about $20 billion annually (California Legislative Analyst's Office).

At InHouse America, we believe that a fair capital gains tax structure can level the playing field for small businesses across the nation.

By redirecting funds from the wealthiest to crucial services, we’re not just supporting big initiatives—we’re empowering the heart of our economy: small businesses.

With better access to funding for healthcare, education, and infrastructure, small enterprises can thrive, create jobs, and build communities.

(Further Insights)

Ultimately, a stronger support system for small businesses means a brighter future for all Americans. Together, we can champion growth and innovation from the ground up!

InHouse America doesn't endorse anyone but focuses on creating awareness of the importance of supporting small businesses and which administration is best for doing so!