Dow sinks more than 300 points!
New York | April 22, 2021
New York (CNN Business) US stocks are tumbling Thursday over investors’ worries about higher taxes.
All three major indexes are in the red, with the Dow (INDU) down 0.9% — more than 300 points lower. The S&P 500 (SPX) fell 0.8% and the Nasdaq Composite (COMP) tumbled 0.7%.
It’s not surprising that Wall Street doesn’t like higher taxes, particularly when it comes to capital gains — the levy investors pay on realized profits after selling a stock, for example. The Biden administration wants to raise taxes on the wealthy to pay for the pandemic recovery. It has proposed to hike capital gains taxes for those earning more than $1 million annually to 39.6%.
These rates look very different at the moment, with a top federal capital gains tax of only 20%. Individuals earning $200,000 a year and married couples making $250,000 a year also pay an additional 3.8% tax on their capital gains to help fund the Affordable Care Act….
(Excerpts from CNN)