Source: Found here If your taxable income is more than $518,900, you pay 20% on your long-term capital gain. Under current law, even if you have millions in long term gains, your top capital gains tax is 20%. But before we discuss Biden's proposal, it's important to note that many long-term capital gains are also subject to the net investment income tax, sometimes called the Obamacare tax.
President Biden is proposing a tax increase for people making more than $400,000 a year to help finance Medicare. The increase would hike the Medicare tax rate from 3.8% to 5%.
Some fund managers are able to treat certain types of carried interests as a long-term capital gain, even though they receive the interest as part of their pay. This provision of the law has long been criticized, and the Biden budget proposal would treat these interests as ordinary income for federal income tax purposes.
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