President Joe Biden’s American Family Plan includes a big increase in the top federal tax rate on long-term capital gains and qualified dividends, from 23.8% today to 39.6%. This would be bring the top federal rate to highs not seen since the 1920s — an obvious disincentive to invest, including for many Ohio manufacturers.
The non-partisan Tax Foundation reports that under the Biden plan, the maximum federal rate on capital gains would be 43.4% when including the net investment income tax. This means Ohio’s maximum combined capital gains rate would soar from the current 28.6% to 48.2%. 4/26/2021