Capital Gains Tax Rate Set at 25% in House Democrats’ Plan
- Rate would rise from 20% under House panel’s proposal
- Biden had wanted to boost rate to 39.6% for highest earners
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House Democrats presented a smaller-scale overhaul of the way investments are taxed than President Joe Biden proposed earlier this year, highlighting the political challenge in enacting higher levies ahead of next year’s midterm elections.
The plan, released by the House Ways and Means Committee Monday, sets the top rate for taxing capital gains -- money earned from the sale of assets such as stocks or property -- at 25%, up from 20% under current law. Including a 3.8% Medicare surtax on high earners, the top capital gains rate would be 28.8%.