Wall Street Democrat Roger Altman on Biden’s capital gains tax plan

Wall Street Democrat Roger Altman said Friday that long-term investors would not be prevented by Joe Biden’s plans to raise the capital gains tax rate if he defeated President Donald Trump in the November election.

“I have been in finance for a long time, and I have never seen any example of people who do not invest what they think are good because the rate of capital gains is more than a few points otherwise it could be” Altman said on CNBC’s “Squawk on the Street”. “I don’t believe the world we live in.”

The Democratic nominee, Biden, has proposed raising the tax on proposed long-term capital gains to 39.6% for ordinary income, for those with incomes above $ 1 million, according to the Tax Foundation. Currently, the rate is 20% for single families with taxable income over $ 441,451.

Altman, who founded the investment banking advisory company Evercore in 1995, acknowledged that a Biden win would prompt some investors to sell the shares in the hopes of closing them at a profit and paying a lower tax on them. But he said the main reason for the initial pull would be a blow to the market for historical radar.

“An increase in the rate of capital gains will always lead to the sale of equity securities before the effective date of the increase. This will happen every time,” Carter and Clinton had two stents working in the US Treasury Department, Altman said. Administration. “But the long-term effects have not actually been historically negative, and the long-term effects depend on … macroeconomic factors. Not just the rate of capital gains.”

Altman donated $ 41,000 to the Biden Action Fund, a joint fundraising committee, in May, according to Federal Election Commission records. Altman gave Biden $ 2,800 in January for the party’s primary, as well as once in 2019. He has also donated to a host of other Democratic politicians in 2020, including Sen. Amy Klobuchar of Minnesota.

Biden has sought to portray his campaign, which Wall Street is not concerned about, stating that in early July he wanted to end the “era of shareholder capitalism”. Biden also said the “rich investor class” “does not need me.”

Trump, who signed a comprehensive tax cut into law at the end of 2017, is critical of Biden’s proposed tax plans and has suggested that he will push for additional tax cuts should he be elected to a second term . According to a RealClearPolitics average, 50.5% of Americans approved of Trump’s handling of the economy while 46.9% disappeared.

The Tax Cuts and Jobs Act, which came into force in 2018, reduced corporate tax rates from 35% to 21%. Former vice-president under Barack Obama, Biden has stated that he plans to raise corporate taxes from 21% to 28%. In 2012, Obama also proposed a 28% rate.

A recent survey by PricewaterhouseCoopers found that the majority of respondents expected corporate taxes to help pay billions of federal stimulus dollars pumped into the US economy to help weather the epidemic. Who will win, Biden or Trump. The survey was sent to about 600 business executives in the US

For his part, Altman said he believed the old corporate rate of 35% was certainly too high. But he said that Biden’s 28% offer is a “wise thing.” He said, “I think the business community would be comfortable with it. Would they have a lower rate any day? Certainly? But would they have a sound corporate tax rate of 28%? I think so.”