Biden Wants to Impose Highest Capital Gains Tax Rate Since Jimmy Carter in 1977

Presumptive Democratic presidential nominee Joe Biden wants to impose the highest capital gains tax rate since former President Jimmy Carter in 1977, according to nonprofit taxpayer advocacy group Americans for Tax Reform.

"Joe Biden wants to impose the highest capital gains tax rate since the Jimmy Carter era known for its economic stagnation," according to a press release from the group. "Biden wants to take the current capital gains tax rate of 20 percent and double it to 39.6 percent. That's the highest rate since 1977, when the highest possible capital gains rate was 39.875 percent."

Americans for Tax Reform offered several different examples of Biden suggesting that he wants to increase the capital gains tax, in a video posted by the organization on YouTube.

"On Oct. 23, 2019 Biden said: 'So every single solitary person, their capital gains are going to be treated like real income and they are going to pay 40 percent on their capital gains tax,'" the press release stated. "On Sept. 27, 2019 Biden said: 'I'm gonna double the capital gains rate to 40 percent.'"

According to the group, on December 9, 2019, Biden said the capital gains tax rate "could go higher" than 40 percent.

Joe Biden
Democratic presidential candidate and former Vice President Joe Biden speaks at a "Build Back Better" Clean Energy event on July 14, 2020 at the Chase Center in Wilmington, Delaware. Olivier Douliery/Getty

Additionally, Americans for Tax Reform explained how the former vice president has "repeatedly voted against capital gains tax cuts."

"In 2003, Biden voted against the reduction in the capital gains rate form 20 percent to 15 percent. In 2005 and 2006, Biden voted against the successful extension of the 15 percent rate," the group said. "In 2012, Vice President Biden and President [Barack] Obama succeeded in their push to let the capital gains tax rate rise to 20 percent."

The group said if Biden is elected president, his plan to increase the capital gains tax rate will impact some worse than others, depending on the specific state's capital gains tax rate. According to the release, "some taxpayers under Biden will face a capital gains tax rate over 50 percent." For instance, California's 13.3 percent state capital gains rate "means Golden State taxpayers will face a rate of 52.9 percent."

Americans for Tax Reform recalled how then-President Carter wanted to increase the capital gains tax rate in 1979, "but there was a backlash from middle class households around the country, from Democrats and Republicans alike. It was so fierce, Carter was forced to relent and ended up signing a capital gains tax cut."

Newsweek reached out to Biden's campaign office and Americans for Tax Reform for comment, but did not receive a response in time for publication.