When combining the economic impact of President Biden's tax proposals with the benefit of #infrastructure spending, we estimate that long-run GDP would decrease by 0.9 percent and American incomes would fall by an average of 1 percent, resulting in 165,000 fewer U.S. jobs.
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When including the net investment income tax, the top federal rate on capital gains would be 43.4%.
Rates would be even higher in many U.S. states due to state and local capital gains taxes, leading to a combined average rate of 48% compared to about 29% under current law.
Under President Biden's tax plan, 13 states and D.C. would have a top combined capital gains tax rate at or above 50%:
56.7% CA
54.3% NY
54.2% NJ
53.3% OR
53.3% MN
52.4% DC
52.2% VT
50.7% HI
50.6% ME
50.4% CT
50.3% ID
50.2% NE
50.2% MT
50.0% DE
(58.2% NYC)
(57.3% Portland, OR)