Watchdog Slams Biden Plan to Double Capital Gains Rate

For Immediate Release

Contact: David Williams (202-258-6527)

Washington, D.C. – The Taxpayers Protection Alliance (TPA) criticized the proposal by the Biden administration to raise the capital gains tax rate to 43.4 percent for investors. This is an effective doubling of the rate and would severely stifle investment and innovation in the American economy at a time when we can least afford to do so.

In response, TPA Vice President Patrick Hedger offered the following comment:

“The capital gains tax is already the definition of cutting off the nose to spite the face. Hiking it to the levels President Biden has floated is beyond reckless. When you tax something aggressively, you’re trying to get less of it. This is a tax on investment. Why on Earth would we treat investment in new jobs and new technology like we treat cigarettes or pollution?

“Adding insult to injury, the capital gains tax is double-taxation, punishing Americans that have chosen to take what is left of their income after taxes and putting it back into the economy or towards their retirement.

“We should be entering a new roaring twenties coming out of this pandemic, but President Biden seems intent on muting the economic momentum and fast-forwarding to a repeat of the 1930s.”

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Taxpayers Protection Alliance (TPA) is a non-profit, non-partisan organization dedicated to educating the public through the research, analysis and dissemination of information on the government’s effects on the economy.