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But only for the richest * Share — * * * * Telemundo News Logo Search in Search Sections * DECISION 2024 * PLAN YOUR VOTE * IMMIGRATION * HEALTH * Crime and violence * ECONOMY * INTERNATIONAL * T VERIFY * MEXICO * LATIN AMERICA TV * today * NOON NEWS * NEWS 6:30PM * NEWS 11:35PM MORE FROM TELEMUNDO * Telemundo * Shows * ENTERTAINMENT * SPORTS * HOROSCOPES * The Power in You * LIVE Follow Telemundo News * * * Search in Search *Facebook * Twitter * Email * SMS * Print * WhatsApp * Reddit *Pocket *Flipboard * Pinterest * Linkedin US Elections 2020 # Yes, Biden proposes a 40% tax on profits from sales of houses. But only for the richest The information circulating on social networks that Biden will increase Capital gains tax is misleading. The candidate's proposal Democrat applies only to those who earn more than $1 million a year. The current rate for the richest is 20%. This video file cannot be played.(Error Code: 102630) ![\\"\\"](\\" ?ramen_itok=iqwQftIcTf\\"/) More than 60 million voters have already gone to the polls, a record early voting 02:17 Oct. 27, 2020, 12:15 AM GMT+5:30 / Updated Oct. 27, 2020, 7:41 AM GMT+5:30 / Source: Telemundo By Claire Savage - AFP Just before the presidential elections on November 3, it has circulated on social networks information about the candidate's tax proposal Democrat, Joe Biden, in which they assure that there will be a 40% cut in profits from Americans who sell their home. This statement is deceptive According to the plan of the former vice president and tax experts, the rate would only affect those who earn more than $1 million a year. \"Biden's Capital Gains Tax means that when you sell your house you will owe 40% taxes on your profits! Let that be asimile\", reads a Facebook post dated October 16, 2020. Similar messages have been circulating on Facebook. Here you can see some of them and here other publications. Capital gains tax is charged when an individual or company couple sells an asset, such as a house, for more money than they bought it for. Biden's tax proposal, available on the campaign website, says that if elected president, the Democrat would restore 39.6% of the higher individual income rate and would get rid of \"wickets Capital Gains Tax Laws for the Super Rich,\" says. \"Biden will ensure that those who earn more than $1 million will pay the maximum capital gains rate, doubling the tax rate of capital gains of the super rich\", says the portal. Kent Smetters, professor of business economics and public policy at the Wharton School of the University of Pennsylvania, told AFP that the claim that circulates on social networks is \"incorrect\". [This is what Trump and Biden propose to win the presidency] The Penn Wharton Budget Model (PWBM), an economic analysis project led by Smetters, published a report on October 20 that explains How capital gains taxes work and who is involved would be affected by the policies of Biden and President Trump. Under current law, homeowners in the United States are exempt from capital gains tax if they earn earnings less than $250,000 ($500,000 for married couples) in the sale of your house. Certain rules apply to qualify for this exemption, such as having used the home as your primary residence for at least least two years. According to Biden's plan, sellers would only pay 39.6% taxes on the profits obtained from the sale if they make more than a million dollars annually in taxable income, according to the report. PWBM director of policy analysis Richard Prisinzano said that anyone who earns less than that amount (or who has owned the house for less than a year before selling) “wouldn't see any difference in your tax liability for the sale of a house\". Capital gains are mainly made in the upper echelon of income. The current capital gains tax rate for the step of highest income - $441,450 for singles and $496,600 for couples - is 20%, half of what Biden proposes, says the report PWBM. [Follow our complete coverage of the presidential elections] The Trump Administration is seeking to reduce that rate to 15%. The analysis from PWBM on Trump's tax proposals is available here. The American Enterprise Institute public policy research group (AEI) also said in its analysis that Biden would tax capital gains \"as ordinary income for taxpayers who report 1 million dollars or more\". Overall, AEI found that "in 2021, Biden's proposals would increase taxes, on average, for the 5% of households with the highest incomes and would reduce taxes for 95% of households with the lowest purchasing power\", and estimated that Biden's proposals would result in a small reduction in Long-term GDP. AFP has verified other claims that have been made about the tax plan of Biden. You can read them here. The translation of this article was carried out by Daniela Nougues thanks to the FactChat agreement, coordinated by the International Fact-Checking Network (IFCN) with the support of WhatsApp. The objective of the project is to better information in Spanish during the US presidential elections in 2020. You can receive this and other political checks directly on WhatsApp by clicking here or by registering the number +1 727-477-2212 and writing \"Hello\" in the first message. 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Biden's Capital Gains Tax means that when you sell your home you will owe 40 taxes on your gains Let that sink in