Biden’s Capital Gains Tax Plan Fixes Nothing: Opinion

Democratic Presidential challenger Joe Biden’s proposed tax plan includes raising long-term capital gains tax rates and taxes on dividends to 39.6% for those making more than $1 million a year. That would be an increase from the current 23.8%, marking the biggest hike in capital gains taxes in history. Given all that is going on with elections, the topic is not getting much attention, but it has the potential to cause a great deal of economic distortion.

The capital gains tax rate has historically been lower than taxes on ordinary income, which is the taxes paid on salary or ...