The Biden administration is proposing to increase the capital gains tax rate for confident investors, and it has been met with mixed reactions across the board. 

A recent Treasury Department report indicated that long-term capital gains and qualified dividends of taxpayers with taxable income of over $1 million would be taxed at ordinary rates, with a rate ceiling of 37%.

However, the report also provided other proposals impacting such rates, including raising the ordinary rate ceiling to 39.6% and increasing the net investment income tax rate by 1.2% if it exceeds $400,000.

Forbes reported that if the proposals are approved and implemented, the capital gains tax in 11 states would increase above 50%, with California, New York, New Jersey, Minnesota, and Oregon taking the worst hit. 

READ NEXT: Unclaimed Tax Refunds: IRS Still Holds Over $1 Billion in Payments; Here's How to Claim Yours Before May 17 Expiration

Financial Pundits See Tax Rate Increase Proposals Negatively

According to the IRS, the current capital gains tax does not exceed 15% "for most individuals." The proposed tax rate increases, which are targeted at corporations and wealthy people, experts say could negatively impact the country if they pass.

The Heritage Foundation research fellow and economist EJ Antoni recently told Fox News Digital that investment is the "real driver" of economic growth, and taxing investments would negatively impact the economy and slow its growth. 

Americans for Tax Reform director of federal tax policy Mike Palicz said that the Biden administration's proposal to raise the top capital gains tax rate to 44.6% would be "really dangerous." 

Meanwhile, US Global Investors CEO Frank Holmes wrote in his Forbes article that even influential names in Wall Street and the broader financial community find the proposals counterproductive to the economy. 

Moreover, Homes continued, a 2021 study found that three out of four Americans, including 76% of independent voters, reject such a policy. 

"This sentiment stems from a fundamental belief in economic liberty and the principle that a gain is not truly a gain until it is realized," he said.

READ MORE: Where's My Child Tax Credit 2024: When to Receive My Money After April 15 Tax Filing Deadline?