Proposed Changes to Capital Gains Likely To Affect Early- and Late-Stage VC Differently

President Joe Biden’s American Families Plan unveiled last week included a substantial increase to the capital gains tax — taxes on earnings from investments — but its effect on venture capital may not be as straightforward as it appears.

Biden’s proposed tax overhaul includes hiking the long-term capital gains taxes from 20 percent to up to 39.6 percent for high earners (or 43.4 percent if one includes Medicare surtax) — basically taxing investment earnings as income. READ MORE