Well said, bbotcs, I and probably many others who are active on this board, have a good portion of our income generated from capital gains. When feasible, I try to hold positions for a year or more to qualify for the much more attractive long term capital gains tax rate.
Eliminating the LTCG rate, will more than double the tax bill for those qualifying trades. And NO, Mr Biden, I do not make more than $400,000 per year either.
As for the proposed increase in the corporate tax rate from 21 to 28% I do care. Stock prices generally reflect what the expected future earnings are. Raising corporate rates by 33% will bring a 10+% reduction in earnings going forward. So that could well mean a 10% drop in stock prices to reflect that. Most economists also say it is a big mistake to raise taxes when we are in a recession. Throw an increasing regulatory environment on top of that and I suspect many of us will watch our capital gains evaporate.
