75% of stock owners won’t pay Biden’s proposed capital-gains tax hike


President Joe Biden and First lady Jill Biden walk on the Ellipse near the White House on April 25, 2021.

Tasos Katopodis | Getty Images News | Getty Images

Roughly 75% of U.S. stock investors wouldn’t be subject to an increase in the capital-gains tax rate due to the types of accounts they own, according to UBS.

President Joe Biden is expected to propose raising the top federal capital-gains tax to 39.6%, from the current 20%, for millionaires.

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Retirement accounts

Remaining 25%

Biden is expected to release the proposal as a way to fund spending in the upcoming American Families Plan, expected to come in at around $1 trillion.

The proposal may also change during legislative negotiations in Congress. For example, UBS expects lawmakers to pass a 28% long-term capital-gains tax rate instead of 39.6%.

Investors who are unsure whether their investment account is subject to capital gains tax can look at their account title, Auslander said.

The title for a retirement account would clearly state an investor’s name with accompanying language such as “401(k)” or “IRA,” he said.

Tax still owed



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