Joe Biden reportedly is going to propose raising the capital gains tax rate to 43.4% for wealthy individuals from 23.8%.
It has sent Wall Street into a tizzy.
The news on Thursday sent stocks lower. The Dow closed down 321 points, or 0.94%, to 33,815, the S&P 500 dropped 0.92% and the Nasdaq declined 0.94%.
Financial Twitter and experts on Wall Street have mostly opposed the proposed tax rate increase, while others weren't as worried about it being as high as 43.4% or it affecting the markets as much as some of the doomsday predictions seen Thursday.
Jim Cramer shared in his Real Money column on Thursday why he doesn't fear the tax man and thinks in the short term that stocks falling on the news could present a buying opportunity for investors. He does recommend investors be ready for anything.
Most commentators reacting to the capital gains tax proposal weren't surprised by the news because Biden talked about raising the capital gains tax rate during his presidential campaign.
Financial institutions like UBS (UBS) - Get Report and Goldman Sachs (GS) - Get Report don't see the market reacting too negatively to the news in the long term and Goldman believes the eye-catching number of 43.4% tax rate won't happen.
Here is a collection of reactions from the Wall Street community on the news of President Biden's proposed capital tax rate increase.
Chief investment strategist at Charles Schwab, Liz Ann Sonders, shared why she doesn't believe an increase in the capital gains tax will affect the stock market.
Venture Capitalist Vinod Khosla supported the boost in the capital gains tax rate.
Venture Capitalist Tim Draper said he believes the increased tax rate will kill job creation.
CNBC's Carl Quintanilla shared Goldman Sachs's expectations of an increased tax rate by sharing that a "28% rate looks most likely."
Managing and founding principal of AQR Capital Management, Cliff Asness, shared why value investors shouldn't be worried about a potential capital gains tax rate increase.
British Entrepreneur Alistair Milne had advice for investors who want to avoid paying the increase in the capital gains tax.
Jeffery Kleintop, chief global investment strategist at Charles Schwab, shared the capital gains tax rate for perspective.
TheStreet founder Jim Cramer wasn't too pleased about how the news was released.