Biden Pushes Over 50% Tax Rates in Blue States to Pay for Administration Plans

President Joe Biden plans on almost doubling the current capital gains tax rate, from 20% to a marginal rate of 39.6%.

Americans making more than $1 million will be pay 39.6%, and increases to 43.4% when you consider an existing surtax on investment income.

The purpose of the proposal is to help pay for the $2.25 trillion infrastructure initiative called the “American Jobs Plan” according to Bloomberg.

For investors earning more than $1 million in already high-tax states such as New York and California, tax rates on capital gains could be over 50%. Specifically, they could reach 52.22% in New York and 56.7% in California.

After the news broke, stocks fell, with the S&P 500 dropping 0.9% at its closing. Ten-year Treasury yields fell from a short-term high of 1.59% to 1.54%.

In a press briefing on Thursday, White House Press Secretary Jen Psaki was asked about the specifics of the plan. She responded “we’re still finalizing what the pay-fors look like.”

President Biden is expected to release more information on the proposal next week, in addition to other tax increases to boost spending for the “American Jobs Plan.”

“The President’s calculation is that there is a need to modernize our infrastructure, there is a need to invest in child care, there is a need to invest in early childhood education, and making our kids and the workers of the next generation more competitive,” Psaki told reporters.

Fierce opposition

Biden and his economic team believe that raising the capital gains tax will not have a negative impact on long-term investors. This tax alone is slated to raise $370 billion over a period of 10 years, according to the Urban-Brookings Tax Policy Center.

In addition to this tax, the Biden administration also plans to increase estate taxes for those earning more than $400,000.

Biden tax plan has been met fierce opposition from Republicans, who believe that the current taxes for the wealthy are more than plenty.

“It’s going to cut down on investment and cause unemployment,” said Chuck Grassley, top Iowa Republican and former chair of the Senate Finance Committee.

“If it ain’t broke, don’t fix it,” he said.

The consensus of most Democrats is that the taxation of investment should be similar to the taxation of wages.

“There ought to be equal treatment for wages and wealth,” said Ron Wyden, a Democrat and current Senate Finance Committee Chairman.

“On the Finance Committee we will be ready to raise whatever sums the Senate Democratic caucus thinks are necessary,” he said.

Oregonians Furious at ‘Permanent’ Mask Mandate Proposal

Thousands of Oregonians are furious over a new proposal stated to extend their nearly expired mask mandates until "no longer necessary." As current Oregon COVID regulations are set to expire

Putin Calls Biden’s Bluff After ‘Killer’ Label

After March’s back-and-forth barbs, Russian President Vladimir Putin has called President Biden’s bluff. Soon after the inauguration, the new administration has increased the rhetoric toward the Russian leader, with Biden

Trump Leaves Door Open to 2024 Return to Power

Former President Donald Trump teased during an interview that aired late Monday a possible run for presidency in 2024. While he declined to make definitive statements due to legal reasons,

Biden to Feds: Stop Calling Immigrants ‘Aliens’ and ‘Illegals’

The Biden administration has ordered federal immigration agencies to cease using the terms "illegal alien" and "assimilation" when referring to those crossing the U.S. border illegally. Memos sent from the

George W. Bush ‘Shocked’ by Public Reaction to Friendship with Michelle Obama

Former President George W. Bush said he was “shocked” over public reaction regarding his friendship with former First Lady Michelle Obama. Bush and Obama's relationship has long intrigued and caused

States Moving Forward with Transgender Athlete Bills

West Virginia became the latest state to pass a bill that would ban transgender people from competing in female middle school, high school, and college sports. The bill narrowly got

Supreme Court Packing Unpopular with Voters

While Americans favor of term limits for Supreme Court justices, they are less enthusiastic about changes to the overall makeup of the court, according to a recent Ipsos/Reuters poll.  Polling

Michigan Democrats Ignored Their Own Covid Travel Recommendations

Those in the state house in the state of Michigan are getting some backlash after they set out tough travel recommendations but then didn't follow their own guidelines. One in

Eyeing 2022, Florida Charges Ahead with Voting Reforms

Sweeping election reform bills are being proposed across the country following the 2020 presidential election. Among them is Florida Senate Bill 90. The bill establishes that voters who wish to

President Biden’s Chauvin Trial Statements in Conflict with His Own Questionable Senate Record On Race

When the jury deliberating the verdict in the Derek Chauvin trial for the death of George Floyd signaled that they had reached a verdict after 10 hours of deliberation, America

Biden Pushes Over 50% Tax Rates in Blue States to Pay for Administration Plans

President Joe Biden plans on almost doubling the current capital gains tax rate, from 20% to a marginal rate of 39.6%. Americans making more than $1 million will be pay

Conservative Social Media App Parler Returning to App Store

Last Monday, tech conglomerate Apple wrote a letter to Republicans of the House and Senate stating that the right-leaning social media app Parler will return to the App Store after

Census Earthquake: Red State Gains, Blue State Losses in House

Texas and Florida, two solid red states, are set to gain seats in the House of Representatives, while big blue states, including New York and California, are expected to lose

Cuomo Nursing Home Deaths: Is the Governor to Blame?

New York Governor Andrew Cuomo appears to have obscured the number of COVID-19-related deaths in nursing homes — possibly at the cost of the lives of seniors in those homes

Sen. Graham: Biden Presidency ‘Very Destabilizing’ So Far

Lindsey Graham, GOP Senator of the state of South Carolina, called President Joe Biden a “destabilizing” president in an interview with Fox News. On Fox News Sunday, Graham discussed his

Largest State University Systems to Students: Vaccinate or Stay Away

California's public universities have announced in a joint agreement that it will be mandatory for students to be fully vaccinated at the start of the fall semester. The 10 campuses

Sen. Scott Unbowed After ‘Uncle Tim’ Trends Following Speech

Sen. Tim Scott, Republican from South Carolina, recently gave the Republican rebuttal to President Biden's joint session address to Congress. Afterward a phrase began trending on Twitter — "Uncle Tim."

Team Biden On Southern Border: Crisis? What Crisis?

The massive influx of migrants over the southern U.S. border recently led President Biden to refer to the situation as a “crisis,” a significant shift for the administration. Quickly, however,

How Tough Guns Laws Fail Terrorized Chicagoans

Gun control has been a highly debated topic. Many on the left want to see more stringent gun regulations become law. Yet all they have to do is to look

NBA Ratings Fall as League Embraces Woke Culture

The NBA, like many professional sports leagues, has embraced the "woke culture." And it is costing them in the bank account and in the TV ratings. Initially, when the season

Hillary Clinton Blasts Biden for Pulling U.S. Troops from Afghanistan

Former Obama Secretary of State Hillary Clinton had a lot to say regarding Biden's decision to begin removing troops from the war-torn country of Afghanistan. Many Americans are happy with

Black Lives Matter: Convict Trump, Stop 2024 Run

The Black Lives Matter organization has recently updated its list of demands, focusing on accountability for former President Donald Trump and his supporters. Black Lives Matter is demanding that politicians

Fauci: U.S. Not ‘Back to Normal’ Until Next Mother’s Day — a Year Away

Dr. Anthony Fauci, director of the U.S. National Institute of Allergy and Infectious Diseases, now predicts that life in the U.S. may be "close to back to normal" by next

Tokyo Olympics Bans Black Lives Matter Apparel, Protest

Political slogans on t-shirts and other clothing in the United States during athletic events is commonplace since 2020. However, the Olympics in Tokyo this summer will take a different stance.