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Cato Daily podcast for Monday, May 10th, 2021. I'm Caleb Brown. Capital gains

taxes are meant to give the government a chunk of revenue directly from the proceeds of your

wise judicious investments. But the Biden administration wants to take

that a step further and dramatically increase the rate Americans pay on those investments.

What are the likely, if not extremely predictable results of that change?

Jennifer Shulp directs financial regulation studies at the Cato Institute?

We spoke last week.

How are capital gains treated differently from regular income taxes by the IRS?

Sure. When we're talking about what's known as a long-term capital gain, which is a capital gain that comes after

holding an investment for a certain period of time.

It's generally over a year, but there's some trickiness in that. Those taxes are subject to a lower tax

rate than your income tax rate. What changes is the IRS pondering?

Well, Biden has, and throughout the campaign and recently again has proposed raising the long-term capital gains tax rate on certain high-income

earners to essentially equal the income tax rate, which is a massive increase in that tax rate.

It would move, the people, the income earners that they're looking at are people making

over a million dollars a year.

...