{"id":7512,"date":"2024-11-08T03:22:15","date_gmt":"2024-11-08T03:22:15","guid":{"rendered":"https:\/\/finderica.com\/higher-capital-gains-taxes-unlikely-under-trump-republican-congress\/"},"modified":"2024-11-08T03:22:15","modified_gmt":"2024-11-08T03:22:15","slug":"higher-capital-gains-taxes-unlikely-under-trump-republican-congress","status":"publish","type":"post","link":"https:\/\/finderica.com\/?p=7512","title":{"rendered":"Higher capital gains taxes unlikely under Trump, Republican Congress"},"content":{"rendered":"
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Former U.S. President and Republican presidential candidate Donald Trump speaks during an election night event at the West Palm Beach Convention Center on Nov. 6, 2024.<\/p>\n

Jim Watson | Afp | Getty Images<\/p>\n<\/div>\n<\/div>\n<\/div>\n

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President-elect Donald Trump’s victory means higher individual taxes, including levies on investments, are less likely for top earners, experts say.<\/p>\n

Vice President Kamala Harris proposed higher long-term capital gains tax rates during her campaign \u2014 raising the top rate to 28% from 20% \u2014 for those making more than $1 million annually. Long-term capital gains rates apply to assets owned for more than one year.<\/p>\n

Harris’ plan veered from President Joe Biden’s 2025 fiscal year budget, which called for 39.6% long-term capital gains taxes<\/a> on the same top earners.\u00a0<\/p>\n

Higher capital gains tax rates, however, are “entirely off the table,” under a Trump presidency and Republican-controlled Congress, said Erica York, senior economist and research manager with the Tax Foundation’s Center for Federal Tax Policy.\u00a0<\/p>\n<\/div>\n

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More from FA Playbook:<\/h2>\n
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Here’s a look at other stories impacting the financial advisor business.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n

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Republicans secured control of the Senate on Tuesday and could maintain a narrow majority in the House of Representatives, which creates a “trifecta” in the White House and both chambers of Congress.<\/p>\n

Even with partial Republican control, “it’s most likely that capital gains tax policy just stays put where it is,” York explained.<\/p>\n

For 2024, investors pay long-term capital gains rates of 0%, 15% or 20%, depending on taxable income. Assets owned for one year or less are subject to regular income taxes.<\/p>\n

You calculate taxable income by subtracting the greater of the standard or itemized deductions from your adjusted gross income. The taxable income thresholds will increase in 2025.<\/p>\n<\/div>\n

<\/a>Changes to ‘net investment income tax’<\/h2>\n
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Higher earners also pay the net investment income tax, or NIIT, of 3.8% on capital gains, interest, dividends, rents and more once modified adjusted gross income exceeds certain thresholds.<\/p>\n

The MAGI limits for NIIT are $200,000 for single filers and $250,000 for married couples filing together and don’t adjust for inflation. Combined with long-term capital gains taxes, higher earners currently pay up to 23.8% on investments.<\/p>\n

“Republicans may try to get rid of the net investment income tax,” said Howard Gleckman, a senior fellow at the Urban-Brookings Tax Policy Center.<\/p>\n

But “that’s a big item” that could add significantly to the federal budget deficit, he said.<\/p>\n

The deficit topped $1.8 trillion in fiscal 2024. \u00a0<\/p>\n<\/div>\n

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Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Former U.S. President and Republican presidential candidate Donald Trump speaks during an election night event at the West Palm Beach Convention Center on Nov. 6, 2024. Jim Watson | Afp | Getty Images President-elect Donald Trump’s victory means higher individual taxes, including levies on investments, are less likely for top earners, experts say. Vice President<\/p>\n","protected":false},"author":1,"featured_media":7513,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rank_math_lock_modified_date":false,"footnotes":""},"categories":[196],"tags":[1118,2228,113,1280,1727,315,563],"class_list":{"0":"post-7512","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-finance-news","8":"tag-capital","9":"tag-congress","10":"tag-gains","11":"tag-higher","12":"tag-republican","13":"tag-taxes","14":"tag-trump"},"_links":{"self":[{"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/posts\/7512","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=7512"}],"version-history":[{"count":0,"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/posts\/7512\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/media\/7513"}],"wp:attachment":[{"href":"https:\/\/finderica.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=7512"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=7512"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=7512"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}