The eleven states facing 50% capital gains tax because of Biden

• Biden proposed 44.6% capital gains tax rate dramatically increases burden 
• Wealthy Americans in 11 states would be hit worst
• READ MORE: Biden proposal for capital gains tax increase is highest in a century 

If Joe Biden is successful in passing his massive capital gains tax rate hike, Americans in 11 states will next year be paying over 50 percent of some of the profits when they sell off their assets to the government.

The president’s 2025 budget proposal includes increasing the top marginal rate on long-term capital gains dividends to 44.6 percent mark, which is the highest ever since the tax was implemented a century ago.

The current rate sits below 25 percent – so the increase represents a significant hike.

Many economic and tax experts agree that raising the capital gains tax this high would dis-incentivize investing and hurt the U.S. economy, despite the Biden administration claiming they are only trying to tax the rich.

‘The Biden administration may think they are going after the ‘super wealthy’ with this proposal, but the opposite will be true,’ Dan Savickas, the Director of Policy for Taxpayers Protection Alliance, told DailyMail.com.

If a 44.6% capital gains tax rate is included in FY2025 budget, Americans in 11 states will have a burden above 50% when state and federal are combined when selling assets

Biden proposed in his budget for next year the highest-ever capital gains tax rate at 44.6% – the last highest was at 40% under President Jimmy Carter in the late 1970s

‘This new capital gains tax proposal will dis-incentivize high-risk, high-reward investments in small businesses and entrepreneurs,’ he continued. ‘It will, in effect, steer money towards more established players, harming smaller players’ access to capital.’

All states besides seven have additional taxes on capital gains and a few would see their total top rate exceed 50 percent when selling off investments and assets.

California would by far have their residents paying the highest top rate with a combined 57.9 percent.

New York and New Jersey are tied for second with 55.5 percent combined capital gains tax rate.

And Minnesota and Oregon are in close third and fourth place with 55.45 percent and 54.5 percent total, respectively, with state and Biden’s proposed national rates taken into account.

Maine would see a 51.75 percent combined rate if Biden’s proposal is passed.

The remaining states that would have a top marginal rate for capital gains above 50 percent would be Nebraska (50.44 percent), Idaho (50.4 percent), Iowa (50.3 percent), Kansas (50.3 percent) and Georgia (50.09 percent).

Capital gains are profits made from selling assets like stocks, businesses, homes and other investments.

The hike would affect people with taxable income of over $1 million and investment income of over $400,000.

Biden’s 2025 budget proposal includes the highest-ever capital gains tax rate since the tax was implemented in the 1920s

Previously, President Jimmy Carter’s top marginal rate for capital gains was the highest when it reached 40 percent in the late 1970s.

If Biden’s rates make it through Congress’ final budget for next year, TRES Finance co-founder and CEO Tal Zackon warns it would move business out of the U.S.

‘Consequently, we could possibly see an unintended domino effect, where capital is moved overseas and used to invest and grow outside of the U.S.,’ he said in a statement on the capital gains proposed hike.

Zackon added: ‘There will definitely be an aftershock from implementing the highest capital gains tax in U.S. history and the world.’

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