For buyers rising involved that President Joe Biden will transfer to lift levies on funding beneficial properties, CNBC’s Jim Cramer on Tuesday supplied a method to keep away from the possibly larger tax geared towards the rich.

“Should you’re frightened about Biden’s plan to lift taxes on capital beneficial properties however not dividend earnings, properly that is not a purpose to promote all the things,” the “Mad Cash” host stated. “It is a purpose to purchase dividend shares.”

Biden may pitch the change, which might finish the tax-favored standing of capital beneficial properties for millionaires, as quickly as this week. As reported, the proposal consists of climbing the tax to 39.6% from 20%. The speed may hit 43.4% for the richest taxpayers.

“If the capital beneficial properties fee goes as much as 39.6% and the dividend fee stays the identical at 20%, that immediately makes dividend shares a heck of much more enticing,” Cramer stated.

“Biden’s plan would create a world the place each greenback of dividend earnings is price $1.32 of capital beneficial properties,” he added. “So long as numerous wealthy buyers are frightened about this tax hike, you need to count on that the buyers who wish to pay decrease taxes will begin swapping into dividend shares.”

Cramer endorsed the next 10 high-yielding shares with the “greatest tales”:

Disclosure: Cramer’s charitable belief owns shares of Crown Fort.

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