Investors shouldn't be shocked that Biden wants to raise taxes on the rich, strategists say

US President Joe Biden speaks from the Treaty Room in the White House on April 14, 2021 in Washington, DC, about the withdrawal of the remainder of US troops from Afghanistan.
Andrew Harnik | AFP | Getty Images

Wall Street was spooked intraday Thursday by reports that President Joe Biden is considering a proposal to significantly raise capital gains taxes on wealthy Americans, sending all three major U.S. stock indexes lower.

However, some strategists and policy analysts say the proposal is nothing new and likely won't get through in its most extreme form. The plan was reported Thursday first by Bloomberg News and later by other media outlets.

"I am shocked that it's shocking. This is exactly what Biden had ran on," Ed Mills, a Washington policy analyst at Raymond James, said Thursday on CNBC's "Closing Bell."

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