Amazon CEO Jeff Bezos
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Stocks are plunging on fears of President Joe Biden’s proposal to hike income taxes. That also means some of Wall Street’s favorite stocks are available at bargain prices.
The Dow Jones Industrial Average dropped 400 points on Thursday, following news that Biden would propose raising the capital gains tax rate to 39.6% for those earning $1 million or more, up from 20% currently, according to Bloomberg News, citing people familiar with the matter.
The 3.8% net investment income tax would continue apply, making the overall tax hit on capital gains as high as 43.4% for wealthy Americans, Bloomberg found.
The S&P 500 fell 0.8% and the technology-heavy Nasdaq Composite dipped 0.75%.
The sell-off could be overblown. The Democrats hold only a narrow majority in Congress, which could make it hard for the plan to become law.
For investors wanting to take advantage of the dip in stocks, CNBC PRO screened for some of the most-loved stocks on Wall Street.