Addressing how President Biden’s Tax Proposal affected the markets last week and how numbers potentially affect capital gains with Wealth E&P
April 26, 2021
Welcome to Wealth Enhancement & Preservation’s Market Minute, where we get to update you on everything that happened in the markets this past week.
It was an interesting week with some volatility throughout the week, but we did end up with a very slight increase to a new high for the week.
The S&P started the week at 4,178 and closed at 4,180 for just a tiny little gain, as I mentioned.
The volatility in the middle of the week was largely due to the capital gains rate that was discussed this week. President Biden is proposing a hike in the capital gains rate to pay for the Family Act, so you could pay for some childcare and education costs.
Right now, it's just talk, so we don't know how it will play out. But, the uncertainty of it and the concern that people may sell off stock positions to capture gains before it goes up did cause the volatility this week. The talk is that rates will go from 20% on long-term capital gains up to 39.6% and 43.4% all-in with the Medicare surcharge, which exists either way.
We'll continue to keep an eye on that, but for now, all the signals are still optimistic, and we're going to enjoy it while we can. I hope you have another great week!
If you have any questions for us about the financial markets, please feel free to reach out. Otherwise, stay tuned for our next Market Minute next week!
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