Source: Chris Clayton, PROGRESSIVE FARMER, 4/27/21


Following up on President Joe Biden's plan to increase capital gains, an analysis released on the plan highlights that it only generates higher revenue for the federal government if the plan also eliminates stepped-up basis as well. The analysis by the Wharton School of Business at the University of Pennsylvania looks at the tax possibilities under Biden's plan. Raising the capital gains rate from 20% to 39.6% for people with more than $1 million in income would actually lower federal tax revenue by $33 billion over 10 years – effectively a decline of $3.3 billion a year.

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