Top 5 takeaways from Biden’s American Families Plan

But from an economic perspective, the capital gains tax is already generating some controversy. Wall Street was jittery last week when news broke about the potential hike, which would nearly double the top capital gains tax rate from 20 percent to 39.6 percent. The White House argues this hike would affect only the top 0.3 percent of Americans, but some economists and tax analysts believe it could dissuade private investment, which could harm growth. Another problem could be a wave of stock and asset selling just before the higher rate kicks in. Expect a lot of debate — and lobbying — in Congress if this proposal moves forward.