Biden’s latest capital gains tax increase would only affect the wealthiest 0.3 percent of Americans.

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According to a senior Biden administration official, the proposed capital tax proposal will affect just 0.3 percent of US taxpayers with higher levies on their savings.

Following significant sell-offs in cryptocurrency markets last week in response to news of US President Joe Biden’s proposed capital gains tax increase, the Biden administration justified almost doubling tax levies for just the “very, very rich.”

According to a senior Biden administration official, higher levies on savings under the proposed capital tax proposal will impact just 0.3 percent of taxpayers in the United States.

“There’s increasing evidence that over recent years in fact many, many of the returns at the very top are what they call above-market rates of return, rents and so on. Taxing the people who are doing extremely well in the economy is one way of asking somewhat more from that,” the Biden administration official said in a Monday interview with the Financial Times.

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The capital gains tax threshold for rich investors will be raised to 39.6 percent under Biden’s proposal, up from the existing base rate of 20 percent. The proposed peak limit will be accompanied by an existing surtax for those with $1 million or more, raising the US capital gains and dividends tax rate to 43.4 percent.

The current proposal, according to a Biden administration official, is consistent with Biden’s campaign position, “which was that we needed to fundamentally reform parts of the code that affect the very, very rich or very highest income Americans.”

Following Biden’s plan, both crypto markets and U.S. stocks suffered significant sell-offs, despite growing anticipation and FUD — fear, confusion, and scepticism — that buyers will sell shares until the higher tax rate is implemented. Bitcoin (BTC) was under strong selling pressure, causing it to fall below the $50,000 support level on Friday, reaching a low of $47,500. The stock market in the United States suffered significant losses on Thursday before rapidly recovering.

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Some investors, including billionaire venture capitalist Tim Draper, have expressed dissatisfaction with the proposed tax package. Draper, a prolific crypto supporter, claimed that a capital gains tax of 43.4 percent “might kill the golden goose that is America,” with California taxes theoretically reaching 56.4 percent, which “spells death to job creation.” According to the trader, Bitcoin has the power to become a safe haven for worried buyers. “The antidote for oppressive government and rampant taxes is….Bitcoin,” Draper tweeted on Thursday.

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