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President Biden Proposes Range of Tax Increases in FY 2025 Budget, Including Capital Gains and Medicare Taxes

President Biden Proposes Range of Tax Increases in FY 2025 Budget, Including Capital Gains and Medicare Taxes

CointimeCointime2024/05/06 14:31
By:Cointime

President Biden's FY 2025 budget proposes tax increases totaling $7.3 trillion, primarily targeting higher income taxpayers. The plan includes a potential doubling of long-term capital gains tax to 39.6% for high income taxpayers, with some potentially paying over 50% due to federal and state taxes. The proposal also includes increasing the top federal rate on ordinary income to 39.6% for those making $400,000 or more, a hike in the Medicare tax rate from 3.8% to 5%, repealing Section 1031, and implementing a minimum tax rate of 25% on households with a net worth exceeding $100 million. While unlikely to be enacted, if passed, 11 states could see taxpayers facing at least a 50% capital gain tax.

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