Investors who sell stocks in reaction to the Biden administration’s supposed plan to increase taxes on investments are mistaken, TBEN’s Jim Cramer said Thursday.
“Please don’t fear the IRS. Don’t fix on where a stock comes from, just think about where it goes,” said the host of “Mad Money”, ignoring the odds that the proposal reaches Congress. is.
Shares fell after a Bloomberg News report said President Joe Biden may propose to raise capital gains taxes on millionaires.
Convinced that the situation is creating discounts in the market, Cramer takes the other side of the trade.
“Be prepared to buy stocks that are crushed by tax fears that have nothing to do with fundamentals and watch stocks with good returns if you are in desperate need of tax-advantaged income,” he said. declared.
Cramer advised investors not to sell the news, given the hurdles Democrats must push through a Senate with a narrow majority.
“I can live with the taxation of capital gains as ordinary income – we don’t want more taxes, but I can live with it – but the idea that Biden has 50 senators who will vote for it is just fancy, frankly, ”Cramer said. .
As noted, the plan would raise capital gains tax to 39.6%, compared to 20% for wealthy Americans.