Home > NewsRelease > Proposed Capital Gains Tax Hike Targets Wealthy Investors
Proposed Capital Gains Tax Hike Targets Wealthy Investors
Greg Womack -- Oklahoma Financial Adviser Greg Womack -- Oklahoma Financial Adviser
For Immediate Release:
Dateline: Oklahoma City, OK
Thursday, April 29, 2021


Acapital gains tax hike has been proposed. Another factor that influenced last week’s stock market decline was theproposed capital gains tax hike. Investors’ response was a bit surprising sincethe tax increase wasn’t really news. Ben Levisohn of Barron’s reported: 

“PresidentJoe Biden made no secret of his plan to raise capital-gains taxes on the verywealthy. It was a campaign pledge, one that got enough attention for Goldman Sachsto release a note looking at the historical impact of previous increases on thestock market. (The answer: not very much.)”

According to Steve Goldsteinof MarketWatch, the Goldman note reported the wealthiest U.S. householdssold 1 percent of their equity assets prior to the 2013 capital gains taxincrease. As a result, the S&P 500 Index experienced a short-lived loss sixmonths prior to the tax hike and, six months after the tax hike, the Index wasback in positive territory.

While the long-term impact onstock markets may be relatively small, the effect on high income investorscould be significant.

The administration proposal,as written, would nearly double the capital gains tax rate for people withadjustable gross income of $1 million or more. (That’s about 0.3 percent ofAmerican taxpayers.) The current top long-term capital gains tax rate wouldincrease from 20 percent to 39.6 percent, reported Laura Davison and AllysonVersprille of Bloomberg.

The capital gains taxincrease is a proposed change. It has not been finalized, and there areindications the final tax may be lower if the bill is passed.

If you’re concerned about thepotential tax increase and would like to learn more, please get in touch.

Best regards, 

Womack Investment Advisers, Inc.


Oklahoma / Main Office: 1366 E. 15th Street - Edmond, OK  73013
California Office: 4660 La Jolla Village Dr., Ste. 100 - San Diego, CA 92122
Phone (405) 340-1717 - Toll Free (877) 340-1717 

 Website:  www.womackadvisers.com

Womack Investment Advisers, Inc. (WIA) is a registered investment adviser whose principal office is located in Oklahoma. Womack Investment Advisers, Inc. is also registered in the State of California, the State of Illinois, the State of Indiana, and the State of Texas. WIA only transacts business in sates where it is properly registered, or excluded, or exempted from registration requirements.

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Name: Greg Womack
Title: President
Group: Womack Investment Advisers
Dateline: Edmond, OK United States
Direct Phone: 405-340-1717
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