US stocks fall sharply on report of US Pres. Biden’s plan to hike capital gains tax

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Jennifer Epstein, White House reporter at Bloomberg, tweeted out on Thursday that US President Joe Biden was planning to propose a significant increase in the capital gains tax.

“President Biden will propose almost doubling the capital gains tax rate for wealthy individuals to 39.6%, which, coupled with an existing surtax on investment income, means that federal tax rates for investors could be as high as 43.4%,” Epstein said.

Market reaction

Wall Street’s main indexes fell sharply following this headline. As of writing, the S&P 500 was down 0.4% at 4,156 and the Nasdaq Composite was losing 0.65% at 13,847.

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