The President of the United States will be able to raise the profit tax rate of the wealthiest people above 40%.
The US financial market was more or less sideways on Thursday night, but after Bloomberg reported that President Biden would raise the capital gains tax to 43.4%, this greatly affected the US leading index.
This is what it looks like at the close of three Thursdays:
Bloomberg further wrote that the tax increase will apply to people with an income of $1 million or more.
This may mean that taxes on gains from stocks or house sales may have to be higher than normal income taxes and more than twice the current tax rate.
During the Biden presidential campaign, the new tax policy was an important issue for Biden, because he believed that such a move now proposed would calm the difference between the richest, middle class and the working class.
The reason is that the Democrats argue that the rich make more money from investment income rather than traditional wages than others.
According to Bloomberg News, due to different tax policies, and because profit taxes are levied on both state and country, tax increases will have different effects in different states. California is the highest state, and people earning more than one million will be taxed up to 56.7%.
Before business hours, the US Department of Labor released the most recent unemployment data (unemployment claims). Last week, a total of 574,000 Americans filed for unemployment benefits for the first time. According to consensus estimates by Direkt Makro, this number is less than the 617,000 expected.
Otherwise, Wall Street will enter the peak performance season. After closing time tonight, Intel and Snap are about to hit the road.
The airlines American Airlines and Southwest Airlines have already released the results on the same day. Both have risen from the beginning to 1.05% and 1.74% respectively. According to reports, American Airlines lost money for the fifth consecutive quarter, while Southwest Airlines turned losses into profits. CNBC.