Biden is set this week to propose nearly doubling taxes on capital gains to 39.6% for people earning more than $1 million, Reuters has reported, in what would be the highest tax rate on investment gains since the 1920s.
The soon-to-be-announced tax hike will treat those investment gains as wages for top earners and applies only to about 500,000 households, according to Brian Deese, who runs Biden's policy-writing National Economic Council.
"We need to do something about equalizing the taxation of work and wealth in this country," Deese told reporters. "And that's why the reforms that the president will lay out are focused on this top sliver of people." He said there is no evidence of a significant impact of those capital gains tax rates on long-term investment.