US Markets sank 300 points on reports that US President Biden is planning to hike capital gains tax to as high as 43% from the current 20%.
The proposal as per Bloomberg reports would hike the capital gains rate to 39.6% for those earning $1 million or more, up from 20% currently. Reports said the US president is expected to release the proposal formally next week as a way to fund spending in the upcoming American Families Plan.
The 30 stock Dow Jones 1%, The S&P 500 erased earlier gains and closed 0.9% lower, while the tech index Nasdaq Composite slid 0.9%.