In a single day, President Biden announced that that he wants to cut greenhouse gases even faster and that he is seeking to raise the capital gains tax for individuals.
And so, the market gets it. Bad news for the economy.
According to Fox Business:
“U.S. equity markets turned sharply lower Thursday afternoon following a report that the Biden administration is mulling increasing the capital gains tax.
“The Dow Jones Industrial Average fell over 321 points, or 0.94%, while the Nasdaq Composite and S&P 500 declined 0.92% and 0.94%, respectively.
“Biden, according to Bloomberg, is exploring raising the top capital gains tax rate for individuals earning over $1 million to between 39.6% and 43.4%. The increase would help fund Biden’s American Families Plan, the details of which are still being ironed out.
“In economic data, initial jobless claims fell to a coronavirus-era low of 547,000, better than the 617,000 that analysts were expecting. Additionally, existing-home sales slid to a seven-month low as record prices and tight inventory held back transactions.
“Also impacting trading on Thursday was Biden’s virtual conference with 40 world leaders, including Chinese President Xi Jinping, where he pledged to lower U.S. greenhouse gas emissions by up to 52% from 2005 levels before the end of the decade. Automakers were among the groups in focus as Biden gets set to unveil his climate actions.”