In his fight for a redistribution of wealth, Joe Biden draws a new weapon: the taxation of long-term capital gains. A well-chosen target: those who make more than a million dollars. An announcement that shakes finance and fans of cryptocurrency, far from going unnoticed.
Tax the rich: Biden plays the strong number card
Like a chess player on the political chessboard, Joe Biden does not back down in his struggle for power. In a country where wealth rubs shoulders with debt, the American president is sparing no effort to attract voters in view of the upcoming elections in November. And for this, he intends to use the formidable weapon of tax increaseseven if it means alienating the elites for the benefit of the less fortunate.
Currently, the top tax rate on long-term capital gains is 20%.
He also proposed a 25% tax on unrealized capital gains for wealthy individuals.
Should this proposal be approved? »
In the budgetary mazes of 2025, a proposal sounds like a clap of fiscal thunder: Biden eyes 44.6% capital gains tax rate. However, behind this spectacular figure lie important nuances.
This colossal rate would result from two distinct propositions: first, a increase in ordinary rate to 39.6%then one additional increase of 1.2 percentage points for investment income above $400,000. But in reality, only taxpayers with taxable income exceeding one million dollars would see their rate capped at 37%.
This emphasis strategic maximum rate seems aimed at mobilizing public opinion while avoiding offending economic elites. A tactic which, behind the strong figure, cleverly hides the specific income thresholds targeted.
Biden and Taxes: the big number that hides nuances in finance
The specter of a 44.6% tax on capital gains and a 25% tax on unrealized gains hangs over social networks. However, these measures are not as cataclysmic as they seem.
Biden's proposal, widely relayed, would only apply to taxpayers with more than $100 million in net assets. A crucial detail, often forgotten in the tumult of tax debates.
The origin of this impressive figure dates back to March 11, with an explanatory document from the Department of the Treasury. But be careful, this colossal rate would only be activated if two distinct proposals are approved: one aimed at increase the highest ordinary tax rateand the other to increase the tax rate on investment income.
Despite the cries of alarm, the majority of workers will not be affected. The real targets of these tax measures are high incomes, from $400,000, or even $1 million. A strategy that saves the average cryptocurrency user (BTC, ETH, etc.), according to experts.
While the controversy swells, one certainty remains in the world of finance: for most of us, these tax reforms will hardly change our daily financial lives.
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