Do not fear the taxman.
That's Jim Cramer's warning for investors.
"Do we adjust our portfolio now that President Joe Biden is going to propose a huge increase in the capital gains tax for the wealthy? Do we avoid the asset class that had favorable tax treatment and might lose it?" Cramer asked in his Real Money column on Thursday afternoon.
"We know that today's 20% capital gains rate has attracted a great deal of money into the stock market because you can make so much more money on your money than you can on your work. It's a fact of life that the capital gains cuts that President George W. Bush gave us amounted to an immense windfall for wealthy people. It always struck me as odd that you could keep more of the money you make in the stock market than you could keep from your paycheck. But, as my friend and colleague Larry Kudlow argued endlessly on our show, Kudlow & Cramer, the lower tax rate would spur investment by the rich who might otherwise just park their money in something that doesn't generate jobs," he continued.
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