"Bitcoin Fixes This": Silicon Valley Icon Slams "Job-Crushing" Biden Tax Plan, "Oppressive Government" | WHAT REALLY HAPPENED X-Frame-Options: SAMEORIGIN

"Bitcoin Fixes This": Silicon Valley Icon Slams "Job-Crushing" Biden Tax Plan, "Oppressive Government"

With stocks tumbling following the report that Joe Biden is considering a proposal that would double the capital gains tax, as investors dump in hopes of locking in existing cap gains rates - an exercise in futility if Biden and the socialists in Congress decide to make such a tax change retroactive to all of 2021 - Bloomberg quickly polled several Wall Street traders who focused on the policy’s implications for investing, and concluded that while it was too soon to panic, prospects of a higher levy on stock profits could spark near-term selling as investors look to skirt a higher rate.

Here are some hot takes, courtesy of Bloomberg:

Chris O’Keefe, managing director at Logan Capital Management

The first impact would be people deciding they are either going to take their gains now to try to get ahead of it. You could see people pull forward their gains to this year. It would potentially reduce the flow of capital because people would be less willing to take gains and move onto something else. People would be less willing to trade if they had to pay a tax that high.

Chris Zaccarelli, chief investment officer for Independent Advisor Alliance

It will incentivize selling this year before it does anything else. In the years to come, it will probably discourage selling, to some extent, but may also discourage buying as well as people look at other things to do with their money. The higher the taxes, the less people are likely to participate in activities that cost them tax.

Dan Suzuki, Richard Bernstein Advisors LLC’s deputy chief investment officer

It’s more aggressive than what people were expecting. I would personally fade the reaction though. Seems very unlikely that it will pass in its current state, so it would be heavily diluted.