The CEO and co-founder of Oxygen Financial and president of Exit Stage Left Advisors said in an article for Fox News that President Joe Biden's capital gains tax plan would "crush the stock market" and economy.
A report issued by the Treasury Department, led by Secretary Janet Yellen, is said to have revealed that Biden's proposed fiscal year 2025 budget would raise the top marginal rate on long-term capital gains and qualified dividends to an astonishing 44.6%.
If these new policies take effect when the Tax Cuts and Jobs Act (TCJA) of 2017 expires at the end of 2025, the concern is that "we will be staring down a barrel in 2025 of millions of Americans selling off their highly appreciated stock positions at today's long-term capital gains rates versus paying double in 2026."
It is stated that supply and demand hold true in the stock market, and the fear is that "selling begets more selling." It is believed that if individual stock investors who hold for the long term get nervous that double taxation is imminent, many investors may "head for the exits in a significant way."