House Democrats propose hiking capital gains tax to 28.8%

The proposal differs from a prior Biden administration plan to raise the top combined rate to 43.4% for those with income over $1 million.

  • House Democrats proposed a top federal rate of 25% on long-term capital gains, according to legislation issued Monday by the House Ways and Means Committee. The top rate would be 28.8% when combined with a 3.8% surtax on net investment income.
  • The new rate would apply to gains realized after Sep. 13.
  • In 2022, it would kick in for single filers with taxable income over $400,000 and for married couples at $450,000, according to a Committee aide.

Source: House Democrats propose hiking capital gains tax to 28.8%