It's a lot simpler than that. Biden has this infrastructure project, an admirable idea to be honest, but he needs funding for it. There aren't many ways to get

It's a lot simpler than that. Biden has this infrastructure project, an admirable idea to be honest, but he needs funding for it. There aren't many ways to get this much money. I'm sure he proposed to print the money, but was told no, and he has proposed to raise corporate taxes, but the rich have objected, so he is left with cap gains tax on the rich and on the middle class. The rich, well, have objected the first idea, so only one option was left, and the middle class can't object. In practice, this tax will create tiered cap gains for the rich and for everyone else. If you put 1 billion into sp500, it will grow at 10% per year as usual, for there are no taxable events for such capital. If you put 1 million, you'll get only 10% minus the 4% tax. Needless to say that 10% and 6% are very different tracks with wildly different outcomes in 30-50 years.