75% of stock owners won't be subject to Biden's proposed capital gains tax hike. Here's why

75% of stock owners won't be subject to Biden's proposed capital gains tax hike. Here's why  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  VIEW IN BROWSER | SUBSCRIBE WED, APR 28, 2021 YOUR WEALTH Editor's Note President Biden will detail his capital gains tax hike proposal on the wealthiest Americans in his speech to a joint session of Congress on April 28. It's the largest-ever increase in levies on investment gains and will be instrumental in funding the American Families Plan. That plan is expected to include investments in child care, paid family leave and education, funded by a combination of tax increases on high-income earners. It would complement a $2.3 trillion infrastructure and jobs plan, dubbed the American Jobs Plan, that Biden proposed in March. The proposal is part of a push by the White House for a sweeping overhaul of the U.S. tax system to make rich people and big companies pay more and help fund Biden's economic agenda. The proposal calls for higher capital gains taxes for people with incomes of more than $1 million. So, for those earning $1 million or more, the new top rate, coupled with an existing surtax on investment income, means that federal tax rates for wealthy investors could be as high as 43.4%. The new marginal 39.6% rate would be an increase from the current base rate of 20%. Biden campaigned on equalizing the capital gains and income tax rates for wealthy individuals, saying it's unfair that many of them pay lower rates than middle-class workers. Of course, any such increase would need to go through Congress, where the Democratic party holds narrow majorities and is unlikely to win support from Republicans, political pundits say. Some experts also say it's unclear if the plan would have the unanimous backing of congressional Democrats. Needless to say, there are still many unknowns, which means there shouldn't be any knee-jerk reaction from investors. In fact, about 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 a UBS study. So sit tight. There's more to come on this and the CNBC personal finance team will be on top of the news coverage. For more key stuff like this, please follow me on Twitter @jimpavia and check out CNBC's Financial Advisor Hub and CNBC + Acorns Invest in You: Ready. Set. Grow. Jim Pavia @JIMPAVIA 75% of stock owners won't be subject to Biden's proposed capital gains tax hike. Here's why President Joe Biden is expected a propose a higher capital gains tax this week. About 3 in 4 stock investors would be shielded, according to a UBS report. Biden capital gains tax plan would raise $113 billion if 'step up in basis' is killed, says Wharton President Joe Biden is expected to call for higher capital gains taxes. But the U.S. would lose billions if the step-up in basis at death isn't also eliminated. Social Security's cost-of-living adjustment isn't keeping up with prices retirees pay This year's Social Security cost-of-living adjustment was 1.3%. Now, new data shows that many expenses are going up even faster. How the Biden capital gains tax proposal would hit the wealthy President Joe Biden is expected to double the top long-term capital gains rate to 43.4%. But investors shouldn't necessarily rush for the exits. House bill would make the $3,000 child tax credit permanent A bill proposed Tuesday by House Ways and Means Chairman Richard Neal, D-Mass., would make recent enhancements to the child tax credit permanent. Calls to end $10,000 SALT deduction cap threaten Biden's tax plan ahead of its release Democrats are split over ending the $10,000 cap on SALT, a sticking point that could significantly delay President Biden's infrastructure and tax bills. The Fed will stay put in 2021 despite growing concerns about overheating economy, CNBC survey says Wall Street forecasts the Fed won't reduce its $120 billion of asset purchases until January, three months later than predicted in CNBC's March survey. State Department has warned against travel to 80% of the world. Here's what you need to know In an update to its list of global Travel Advisories, the U.S. State Department downgraded more than 100 countries to its most restrictive Level 4 category. Private equity is buying up annuity and life insurance policies. That may be bad for consumers Private equity firms are buying insurance companies at a record pace. Financial advisors warn some consumers may see higher annuity and life insurance costs. I'm outside today "The sun is rising earlier and the days are growing longer. We're getting back out there and everything's coming back ..." CONTRIBUTORS Sharon Epperson @sharon_epperson Josh Brown @ReformedBroker Unsubscribe Manage Newsletters Terms of Service Join the CNBC Panel   Digital Products Feedback Privacy Policy CNBC Events   © 2021 CNBC LLC. All rights reserved. A property of NBCUniversal. 900 Sylvan Avenue, Englewood Cliffs, NJ 07632 Data is a real-time snapshot *Data is delayed at least 15 minutes. Global Business and Financial News, Stock Quotes and Market Data and Analysis. Data also provided by THOMSON REUTERS