President Biden's proposal to increase the tax rate on capital gains to 44.6% is aimed at addressing income inequality and raising revenue to fund key initiatives such as infrastructure investments, education, and healthcare. The current top tax rate for capital gains is 20%, so this proposal represents a significant increase.

Under Biden's plan, individuals earning more than $1 million a year would be subject to the higher rate on their capital gains. This would affect wealthy individuals who derive a significant portion of their income from investments rather than wages.

Proponents of the plan argue that it is necessary to ensure that the wealthiest Americans pay their fair share of taxes and to generate revenue for important national priorities. Critics, however, argue that such a high tax rate could discourage investment and economic growth.

It remains to be seen whether this proposal will be enacted into law, as it would likely face opposition from Republicans in Congress. However, it is clear that Biden is prioritizing tax reform as part of his administration's agenda.