Biden testing Democratic appetite for taxing the wealthy with capital gains proposal

Some Democrats on Capitol Hill are wary of President Joe Biden’s pitch to nearly double the capital gains tax for the wealthy, meaning that the proposed hike will almost certainly land at a lower level.

Biden wants to pay for his American Families Plan, a $1.8 trillion package focused on childcare and families, by increasing the top individual income tax rate to the pre-2017 level of 39.6% and taxing capital gains for households making more than $1 million as ordinary income.