President Biden recently introduced a budget proposal that raised concerns among investors, with a key provision being the proposed increase in capital gains tax rates. The proposal suggests a maximum rate of 44.6%, which is much higher than historical rates. Former President Trump's campaign, on the other hand, plans to reduce the maximum capital gains tax rate to 15% for a potential second term. This proposed adjustment aligns with the standard Republican approach of lower tax rates. However, the increase in U.S. public debt during Republican administrations and the current rapid rise in debt levels may pose challenges to implementing such rate reductions. The specifics of the capital gains tax policy under a second Trump presidency remain uncertain, but it is unlikely that Biden's controversial unrealized gains tax proposal would be approved. The potential Trump administration might prioritize different areas of public spending and debt management compared to the current administration.