Joe Biden's planned capital-gains tax may put immediate selling pressure on stocks, according to Goldman Sachs.
However, those individuals who sold quickly bought back stocks only a few months later, leading Goldman to conclude that the household selling around tax hikes will be"short-lived and fully offset in the subsequent quarters."Biden's planned capital-gains tax hike may put immediate selling pressure on stocks given what's happened in markets after previous rate increases, according to Goldman Sachs.
History has shown that capital-gains tax hikes spark stock sell-offs. After the last capital-gains tax rate increase in 2013, the wealthiest 1% of households sold 1% of their starting equity and mutual fund assets, worth about $100 billion today, in the three months leading up to the rate hike, according to Goldman. As of 2020, the wealthiest 1% of Americans own 53% of all household stocks. Their collective actions can move markets.
Several Trump tweets instigated bigger selloffs.
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This means absolutely nothing to 60% of Americans 🤷🏾♂️
Joe Biden as president will kill the economy just at a time it needs to get going again. Then he will go after your vehicle that you have worked hard to pay for.
Taxing anyone for 40% for anything is insanity.
'However, those individuals who sold quickly bought back stocks only a few months later' Seems like Goldman Sachs should be guiding folks to not get emotional and hold onto stocks.
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Probably not the best tax to increase. A 1% sales tax increase could offset this instead.
good boy