The plan could act as a backstop to proposals from other Democrats, including former Vice President Joe Biden, who have called to increase capital gains tax rates. Long term capital gains rates, including a levy that funds the Affordable Care Act, top out at 23.8%. Raising that rate could cause billions of dollars of tax avoidance, but a plan to tax those gains annually could eliminate that in the long run, according to the Congressional Research Service.
This article was provided by Bloomberg News.