In a statement released by the White House on Wednesday, US President Joe Biden announced a $1.8 trillion proposal, which covers education and aid to families, funded by tax hikes on the wealthy.

The tax rate on capital gains will be 39.6%.

Photo by Colin Lloyd on Unsplash

Additional takeaways

“The plan will also eliminate long-standing loopholes, including lower taxes on capital gains and dividends for the wealthy, that reward wealth over work.”

“The President's plan restores the top tax bracket to what it was before the 2017 law, returning the rate to 39.6 percent, applying only to those within the top one percent.”

“Households making over $1 million-the top 0.3 percent of all households-will pay the same 39.6 percent rate on all their income, equalizing the rate paid on investment returns and wages.”

Market implications

The US dollar index is battling 91.00, little changed on the White House statement, having stalled its upside near 91.15 ahead of the FOMC decision.

Meanwhile, the S&P 500 futures wobble around 4,180, almost unchanged on the day.