Expressing his disapproval on social media, prominent real estate investor Grant Cardone examined President Joe Biden’s proposed capital gains tax increase in a recent X post.
“Biden proposes a capital gains tax of 44.6%, up from the current 19%,” Cardone posted. “I can’t even come up with my own ideas using Trudeau’s playbook, which got Canada up to 66%.”
Cardone then invoked historic political results, writing, “And he ignored how that played out for the last man to try – the whole country turned red,” and included a map of a past U.S. election to make his point illustrate.
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Cardone’s criticism reflects the concerns of the investing community, particularly those like him for whom capital gains taxes play an important role. In a separate X post, he explained how taxes affect personal finances at multiple levels, from earning and spending to investing and passing on wealth, and highlighted the role of government in individual financial activities.
The Biden administration’s proposed capital gains tax rate is a key topic of discussion because it represents the highest proposed federal rate since its inception. The details of the proposal show a phased approach that aims to increase the tax rates to 37% for taxpayers with taxable income of more than $1 million and, through further adjustments, the tax rate for those who meet certain income and investment thresholds , to increase to 44.6%.
These changes are documented in the General Notes to the Government’s Fiscal Year 2025 Revenue Proposal, which details the combined effect of increasing the top ordinary tax rate and the net capital gains tax rate, potentially culminating in the 44.6% figure. The higher tax rate would only affect a select group of high earners and counteract the narrative of a blanket tax rate increase.
The dialogue surrounding the proposal is heightened by the feelings and concerns of taxpayers, particularly small business owners. By focusing on the wealthy, who pay an average tax rate well below the proposed capital gains rate, according to a White House press release, the policy aims to tailor the tax obligations of high earners to their financial means.
The proposal may have been overshadowed by broader public reactions to the headline figure of 44.6%, sparking a debate about the appropriate contribution of the rich to government coffers compared to the potential risks of a slowdown in economic growth.
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This article Grant Cardone Criticizes Biden for Copying Canada’s High Proposed Capital Gains Tax, Says It’s a ‘Red’ Shift: ‘Can’t Even Come Up with His Own Ideas’ originally appeared on Benzinga.com
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