The Democrats are trying as hard as they can to destroy Trump's robust economy.
If your retirement portfolio took a dump yesterday, you have President Hair Sniffer to thank.
Stocks tumbled Thursday on a report that President Biden is mulling a plan to nearly double what wealthy people pay on their investment gains.
A Bloomberg News report that Biden wants to raise the capital gains tax to as much as 39.6 percent for people earning at least $1 million chopped 321 points off the Dow Jones Industrial Average, which closed down 0.9 percent to 33,815.90.
Before the report hit, major averages were trading higher, buoyed by better-than-expected unemployment data and some positive earnings reports.
But the report, which warned of an overall top tax rate of 43.4 percent when combined with an existing 3.8 percent tax on investment income to fund Obamacare, sent the blue-chip Dow benchmark down as much as 420 points at its lowest point.
The S&P 500 index ended the day down 0.9 to 4,134.98, while the Nasdaq Composite slid 0.9 percent to 13,818.41.
The current top capital gains rate is 20 percent.
Experts predict more selling if Biden’s tax plan becomes a reality — potentially ending a bull market that has defied even the devastating economic fallout of coronavirus pandemic, including high unemployment.
“Biden’s proposal effectively doubles the capital gains tax rate on $1 million income earners,” Jack Ablin, Cresset Capital Management’s founding partner and CIO told CNBC. “That’s a sizable cost increase to long-term investors. Expect selling this year if investors sense the proposal has a chance of becoming law next year.”
WASHINGTON, DC - APRIL 19: U.S. President Joe Biden speaks during a meeting with a bipartisan group of members of Congress to discuss investments in the American Jobs Plan in the Oval Office at the White House April 19, 2021 in Washington, DC. Biden has proposed raising the corporate tax rate to pay for his initiatives, which include traditional infrastructure projects as well as a major investment in long-term, in-home healthcare. (Photo by Doug Mills-Pool/Getty Images)