Biden proposes the biggest capital gains tax in 100 YEARS as he continues his raid on the rich with huge hikes

President Joe Biden's budget proposal for next year includes the largest capital gains tax seen in the last century.

The proposal, released last month, notes that the administration wants to increase the top marginal rate on long-term capital gains dividends up to 44.6 percent, which would make the tax rate exceed 50 percent in states like California, New Jersey, New York and others.

Critics note that the idea will 'disincentivize investing' and could massively hurt U.S. industries like tech while further shrinking the middle class.

The last time the capital gains tax was even close to this high was in the late 1970s under Democratic President Jimmy Carter when the rate topped out at 40 percent, setting an all-time-high at the time. Otherwise, the rates have remained below 30 percent and dipping as low as 13 percent spanning back to the 1920s.

Capital gains are profits made from selling assets like stocks, businesses, homes and other investments. The sale of these assets can usually trigger a taxable event.

President Joe Biden's 2025 budget proposal includes the highest-ever capital gains tax rate in U.S. history at 44.6 percent

Biden's Treasury Department notes that increasing the capital gains tax is a way to level the playing field financially between different races in the U.S., claiming that this would disproportionately apply to white Americans.

'Black and Hispanic families are much less likely to hold stock, and of those families who do, their composition of investment portfolios looks much different than White families,' wrote Biden's team in a document titled Advancing Equity through Tax Reform: Effects of the Administration's Fiscal Year 2025 Revenue Proposals on Racial Wealth Inequality.

It notes that 73 percent of white families owned a home in 2023 compared to 46 percent of black families and 51 percent of Hispanic families. White families also own more stocks and businesses in 2023 compared to black and Hispanic Americans.

The idea of capital gains and taxes on them were established in the1920s, and Biden's proposal is the highest federal rate since its inception.

While 44.6 percent is the proposal for the federal rate, when combined with state rates the capital gains tax would far exceed that in places like California (59 percent), New Jersey (55.3 percent), Oregon (54.5 percent), Minnesota (54.4 percent) and New York (53.4 percent), according to Kitco News.

Biden's Treasury Department notes increasing the capital gains tax is a way to level the playing field financially between different races in the U.S., claiming that this increase would disproportionately apply to white Americans

A footnote from the General Explanations of the Administration's Fiscal Year 2025 Revenue Proposals notes: 'A separate proposal would first raise the top ordinary rate to 39.6 percent … An additional proposal would increase the net investment income tax rate by 1.2 percentage points above $400,000 .'

'Together, the proposals would increase the top marginal rate on long-term capital gains and qualified dividends to 44.6 percent.'

Two separate proposals would need to pass in the final 2025 budget for the 44.6 percent figure to come to fruition.

John Kartch, an analyst with Americans for Tax Reform, told Kitco: 'The proposed Biden top capital gains tax rate is more than twice as high as China's rate… and puts the United States in uncharted territory.' 

Biden's proposal notes that the rates are meant to level the playing field in investments between races in the U.S. The highest-ever rate before this proposal was in the late 1970s under Democratic President Jimmy Carter at 40 percent

'Biden's proposed capital gains tax hike will also hit many families when parents pass away,' Kartch added. 'Biden has proposed adding a second Death Tax (separate from and in addition to the existing Death Tax) by taking away stepped-up basis when parents die. This would result in a mandatory capital gains tax at death – a forced realization event.'

Specifically, the proposal also eliminates a special tax subsidy for cryptocurrency and other transactions. If the budget is approved it could mean crypto and higher-earning stock investors could see their proceeds significantly diminished in future years.

Capital gains tax is added on top of the federal income tax, currently at 22 percent.

Biden's FY2025 budget proposal also seeks to increase the corporate income tax rate to 28 percent.