For investors growing concerned that President Joe Biden will move to raise levies on investment gains, CNBC’s Jim Cramer on Tuesday offered a strategy to avoid the potentially higher tax geared toward the wealthy.
“If you’re worried about Biden’s plan to raise taxes on capital gains but not dividend income, well that’s not a reason to sell everything,” the “Mad Money” host said. “It’s a reason to buy dividend stocks.”
Biden could pitch the change, which would end the tax-favored status of capital gains for millionaires, as soon as this week. As reported, the proposal includes hiking the tax to 39.6% from 20%. The rate could hit 43.4% for the richest taxpayers.
“If the capital gains rate…