Biden's Tax Proposal Leaves Out Social Security So Far

There's a reason millionaires across the country are shaking in their boots right now. President Biden recently revealed the details of a tax proposal that, if passed, could leave the wealthy on the hook for a much higher IRS liability.

For one thing, Biden is seeking to raise the top marginal tax rate from 37% to 39.6% for the country's highest earners. He's also looking to raise capital gains taxes so that the wealthy no longer benefit from holding investments for at least a year and a day.

Investments held for that period at a minimum get pushed into what's currently a more favorable long-term capital gains tax rate that maxes out at 20% for higher earners (most people pay 15%). On top of that, there's a net investment tax of 3.8% that applies to the wealthy. Biden is seeking to tax long-term capital gains at the highest marginal rate he's proposing -- 39.6%. When we tack on the 3.8% surtax, that brings taxable gains up to 43.4% for the rich.

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Source Fool.com