Technology, high-growth stocks could lose out from Biden's capital ...

And this is one more reason for investors to take some profit," he said.The S&P 500 is up 10.1% since the start of the year and trades at a price to earnings ratio of 29.9, a valuation level near its all-time highs."Some traders are looking for an excuse to lock-in profits and they might choose to use this tax story as their catalyst," said Ed Moya, senior analyst at FX brokerage OANDA, in a note.Despite the declines in the stock market on Thursday, many on Wall Street do not expect capital gains taxes to rise substantially given that the Senate is divided with each party holding 50 seats and Vice President Kamala Harris acting as a tie-breaking vote."When you have a razor-thin Democratic majority in the Senate, in which if you lose one single senator, tax increases and the likes thereof aren't going to get through," said Burns McKinney, a portfolio manager at NFJ Investment Group in Dallas.Should some capital gains tax increase pass, however, dividend-paying stocks could become more attractive."If you do have the capital gains tax go above and beyond that on dividends, it could actually end up favoring dividend-paying equities going forward," he said.Qualified dividend income tax rates top out at 20%.