House Democrats’ capital gains tax proposal is better for the super rich than Biden plan

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NICHOLAS KAMM | AFP | Getty ImagesThe uber rich may be cheering House Democrats' proposed tax reforms on investment income relative to the Biden administration's earlier plan.The White House called for a 39.6% top federal tax rate on long-term capital gains and dividends — nearly double the current 20%.Long-term capital gains tax applies to assets like stocks and homes that have grown in value and owned for at least one year; taxpayers owe money on the appreciation when they sell an asset. A dividend tax applies to distributions of profits that companies make to their stockholders.Biden's policy would only apply to the richest Americans — the top 0.3%, or those with $1 million or more of income. It'd be among the highest rates on capital gains and dividends in the developed world.But House Ways and Means Committee legislation unveiled Monday would tax capital gains and dividends at a much lower top rate, of 25%. The House proposal would apply to single filers with at least
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