President Joe Biden’s pledge to pay for his comprehensive child care and infrastructure packages by raising taxes on the wealthy is creating battle lines among venture capitalists.
Even before a specific bill has been formally introduced, some Silicon Valley venture capitalists and other large investors outside California have mobilized to protest the president’s plan to raise the capital gains tax, which investors pay when they sell financial assets. The opposition has started with the industry’s largest lobbying group, the National Venture Capital Association, which has publicly opposed raising capital gains. That move is already setting off a clash between an industry that overwhelmingly favored candidate Joe Biden over then-President Donald Trump.
