US stocks ignore capital gains tax hikes in the long run

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US stocks ignore capital gains tax hikes in the long run

Stock investors don’t like tax increases, but they tend to get over it. Tax hikes on maximum capital gains—like the increase the Biden administration will reportedly propose—have knocked the air out of the US equity market about half of the time, according to Tax Foundation data going back to 1945. Are tax hikes on capital gains bad for the stock market?