Biden Tax Plan

I see a lot of people freakin’ out about Biden’s proposed tax plan both on the corporate tax rate proposal as well as the capital gain rate proposal. I think the big thing is that everyone needs to calm down a bit and let things play out.

Proposal does not mean policy. I have a hard time seeing Biden getting his way with increasing the corporate tax rate to 28% and nearly doubling the highest capital gain rates. It’s likely a negotiation chip as he goes to a very divided Congress about these issues.

Furthermore, even if the proposals did go into effect, we will all have time to plan around it.

I have friends who are panic selling to lock in long-term capital gains. This is a severe overreaction at this point and likely will result in worse consequences for the individual.

Everyone needs to relax a bit and let things play out. These things take time and reacting to a proposal that is far from policy is not a great strategy for anyone.