Goldman Says "No Surprise" In Biden Cap Gains Proposal, Sees Congress Settling On 28% Tax Rate | WHAT REALLY HAPPENED X-Frame-Options: SAMEORIGIN

Goldman Says "No Surprise" In Biden Cap Gains Proposal, Sees Congress Settling On 28% Tax Rate

Today the market freaked out when Bloomberg reported that the Biden Administration will propose to tax capital gains at the top ordinary income tax rate (39.6%, or 43.4% when the existing 3.8% tax on net investment income tax is added).

Well, according to Goldman, this is nothing more than the latest pipe dream trial balloon from progressives, one which won't actually take place and instead has been floated to set the negotiation "ask", with Goldman expecting that "Congress will settle on a more modest increase, potentially around 28%." As such there are no actual "surprises" in the proposal which has been floated in this exact format previously, and while it remains unclear when the tax rate increase would be effective, the bank's economists "think it is unlikely to apply to gains realized before May, and an increase effective Jan. 1, 2022 is more likely."

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