Capital-Gains Tax Hike Exposes Divisions Among House Democrats

Democrats on the House committee in charge of turning Joe Biden’s tax plan into legislation are at odds over how high to increase levies on investment gains, a key part of the president’s agenda.

Most House Ways and Means Democrats support Biden’s plan to raise the capital gains rate on those earning above $1 million to 39.6% from 20%, to make it equal with president’s proposal for the top rate on income, according to a lawmaker and a House aide familiar with the talks. About a third of Democrats on the panel, however, are advocating for a lower rate ...