President Biden’s expected proposal to double the U.S. capital gains tax rate, part of his $4 trillion economic plan for reshaping the American economy, is significant for the U.S. startup and venture capital sectors, but the proposed hike likely wouldn’t affect the average employee at a venture-backed startup.

Biden will propose increasing the capital gains tax rate for high-income earners from 20 percent to 39.6 percent, Bloomberg reported on Thursday. The proposal would affect people who earn $1 million or more and the federal tax rate for high-income investors could reach 43.4 percent (that’s the current surtax on investment income, plus the new capital gains tax rate), per Bloomberg. READ MORE