Excerpt from "Mallouk: Capital Gains Tax Hike Could 'Devastate' Hedge Funds, Boost DAFs" is below:
On Wednesday, President Joe Biden announced his American Families Plan, which includes not only a proposed increase in the top marginal tax rate for those earning more than $400,000 but also a capital gains tax increase for investors earning more than $1 million a year.
Demand for municipal bonds could also rise if the capital gains tax hike for wealthy investors is implemented, even though the primary tax advantage of munis is the exemption of their interest payments from income taxes.
“Wealthy investors are voting with their pocketbook,” Mousseau said. “They smell higher income taxes and a higher overall rate when you add an increase in capital gains taxes.”
Read the full newsletter at the ThinkAdvisor website: https://www.thinkadvisor.com/2021/04/27/what-a-capital-gains-tax-hike-could-mean-for-your-wealthy-clients/
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