Congress likely to cap Joe Biden’s capital gains tax hike at around 28%, Goldman Sachs says

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Congress is likely to settle on a much more modest increase in capital gains tax than President Joe Biden would like, according to analysts at Goldman Sachs, with the eventual figure likely to land at around 28%.

Biden is set to propose a sharp increase in capital gains tax to 39.6% from the current 20% level for those making more than $1 million a year, according to reports in the New York Times and Bloomberg. Capital gains tax is levied on profits from the sale of property or investments.

When combined with the 3.8% surtax on investment income, it would take the tax rate on the wealthiest investors to 43.4%. Bloomberg calculated that the capital gains tax hike would affect about 0.32% of the population.

But the eventual increase – which is in the power of Congress – is likely to be much lower, Goldman Sachs analysts led by chief economist Jan Hatzius said in a note Thursday.

“We expect Congress will pass a scaled back version of this tax increase,” they wrote.

“While it is possible that Congress might pass the proposal in its entirety, we think a moderated version is more likely in light of the razor-thin majorities in the House and Senate.”

The Senate is currently evenly divided while the Democrats currently have 218 seats in the House compared to Republicans’ 212, making compromise more likely.

Goldman Sachs flagged moderate Democrat senators such as Joe Manchin and Kyrsten Sinema as important players in the negotiations over tax rises.

“A 28% rate looks most likely, in our view, as it is roughly halfway between the current rate and Biden’s likely proposal,” the analysts said.

“This is also the rate that President Reagan and a Democratic House settled on a few decades ago when raising the tax from 20%.”

Biden is set to officially lay out the full proposals next week, reports said. The New York Times said the ‘American Family Plan’ will also seek to raise the top marginal income tax rate to 39.6% from 37% and expand child tax credits.

Stocks fell on Thursday when reports of the increase in capital gains tax emerged, with the US’s benchmark S&P 500 finishing 0.92% lower.

Biden’s plan would propose raising the top marginal income tax to 39.6% and bringing capital gains tax in line with that. The rationale is that it is unfair for rich investors to pay less in tax than many …read more

Source:: Business Insider

      

Robinhood appoints insider Christine Brown to oversee its crypto operations after the team tripled in size this year

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Robinhood said on Thursday it has appointed a chief operating officer to oversee its cryptocurrency division. 

Christine Brown, who joined Robinhood as a senior product manager in 2017, will oversee all crypto operations and compliance, the company said.

Robinhood’s team tripled in size this year as surging interest in cryptocurrencies among young investors made the company expand its trading services. 9.5 million customers traded crypto on its online platform in the first quarter of 2021, a 460% jump from 1.7 million customers in the fourth quarter of 2020.

Brown’s decade-long experience in product management led her to serve as vice president of Robinhood’s Product Operations. She will continue to retain her current role, alongside her new position of COO.

“For the past few years, I’ve been focused on building traditional financial infrastructure, but I’ve always been fascinated with cryptocurrency and its potential to create a more open financial system,” Brown said in a statement.

Robinhood’s announcement has followed massive trading outages during significant stock market events. The company said these interruptions are unacceptable, but that there could be intermittent disruptions due to a continued interest in crypto.

The company currently offers seven tradable coins: Bitcoin, Bitcoin Cash, Bitcoin SV, Dogecoin, Ethereum, Ethereum Classic, and Litecoin.

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NOW WATCH: Why some Coca-Cola bottles have a yellow cap

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Source:: Business Insider

      

Robinhood appoints insider Christine Brown to oversee its crypto operations after the team tripled in size this year

Christine+Brown

Summary List Placement

Robinhood said on Thursday it has appointed a chief operating officer to oversee its cryptocurrency division. 

Christine Brown, who joined Robinhood as a senior product manager in 2017, will oversee all crypto operations and compliance, the company said.

Robinhood’s team tripled in size this year as surging interest in cryptocurrencies among young investors made the company expand its trading services. 9.5 million customers traded crypto on its online platform in the first quarter of 2021, a 460% jump from 1.7 million customers in the fourth quarter of 2020.

Brown’s decade-long experience in product management led her to serve as vice president of Robinhood’s Product Operations. She will continue to retain her current role, alongside her new position of COO.

“For the past few years, I’ve been focused on building traditional financial infrastructure, but I’ve always been fascinated with cryptocurrency and its potential to create a more open financial system,” Brown said in a statement.

Robinhood’s announcement has followed massive trading outages during significant stock market events. The company said these interruptions are unacceptable, but that there could be intermittent disruptions due to a continued interest in crypto.

The company currently offers seven tradable coins: Bitcoin, Bitcoin Cash, Bitcoin SV, Dogecoin, Ethereum, Ethereum Classic, and Litecoin.

Join the conversation about this story »

NOW WATCH: Why some Coca-Cola bottles have a yellow cap

…read more

Source:: Business Insider

      

Today’s mortgage and refinance rates: April 23, 2021 | Rates fluctuate

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Some mortgage and refinance rates have decreased since last Friday, while others have increased. All rates are down since this time last month, though.

Marvin Loh, Senior Global Macro Strategist at State Street, told Insider he expects mortgage rates to stay pretty steady until at least fall 2021.

Mortgage rates heavily rely on the 10-year Treasury yield, Some of the factors that affect the Treasury yield, like inflation and employment, will probably change drastically in the coming months. Loh said the market will need time to determine which shifts are short-term and which are permanent before the 10-year treasury yield increases or decreases.

As a result, rates should stay low for a while.

Mortgage rates on Friday, April 23, 2021

Mortgage type
Average rate today

15-year fixed
2.45%

30-year fixed
3.33%

7/1 ARM
4.14%

10/1 ARM
4.01%

30-year FHA
2.35%

30-year VA
2.05%

Conventional rates from Money.com; government-backed rates from RedVentures.

Learn more and get offers from multiple lenders.»

Mortgage rates are low across the board today. The lowest is the 30-year VA loan rate, which is 2.05%.

Rates for conventional mortgages (which might be what you think of “normal mortgages” are at all-time lows. But mortgages backed by the FHA and VA offer even better rates. Government-backed mortgages are great options if you’re eligible.

Mortgage refinance rates on Friday, April 23, 2021

Mortgage type
Average rate today

15-year fixed
2.67%

30-year fixed
3.66%

7/1 ARM
4.47%

10/1 ARM
4.53%

30-year VA
2.27%

Conventional rates from Money.com; government-backed rates from RedVentures.

Click here to compare offers from refinancing lenders »

All refinance rates are low today, but adjustable rates are significantly higher than fixed rates.

How to lock in a low mortgage rate

Rates are at striking lows overall, so it could be a good day to lock in a rate.

Rates will probably remain low for the coming months, though, so you have time to improve your finances to get a better rate. Here are a few ways you can get the lowest possible rate:  

Increase your credit score by making payments on time, paying off debts, or letting your credit age. Requesting and reviewing a copy of your credit report may help you find any errors that might be lowering your score. 

Save more for a down payment. You may be able to put down as little as 3% if you’re looking for a conventional mortgage, …read more

Source:: Business Insider

      

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