The Rich Catch a Break—Sort of—With House Tax Plan. What to Know.

The wealthy caught a break. Not only are the tax proposals from the Democratic-led House Ways and Means Committee far less painful for upper-income investors than what the Biden White House had floated, they are likely to be further eased when the legislation makes its way through the full Congress. 

For investors, the big news is an increase in the tax rate on long-term capital gains and dividends, to 25% from 20%, for individuals earning over $400,000 and married couples earning over $450,000. (That’s in addition to the…