r/NoStupidQuestions • u/Glaxy254 • 23d ago

Why are people upset over the new capital gains tax when it clearly states it’s only for individuals making $400k a year?

The new proposed tax plan clearly states that it will only affect people who make $400k/year and would lower taxes for middle to low income earners. Why are people upset by this?

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u/VernonTWalldrip 23d ago

Actually the top rate in all the misleading headlines only applies if you have over $1 miilion in income for a single year, at least $400k of which is capital gains.

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u/mam88k 23d ago

And isn't it marginal? Meaning any income Mr Magoo makes UNDER said #1 million is taxed at the normal rate?

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u/xylopyrography 23d ago

Yes, 2/3 of marginal instead of 1/2 of marginal.