
The last thing that the economy needs post-Covid-19 world is that world getting more expensive. But that is exactly what would happen under democratic presidential nominee Joe Biden’s proposed tax policies. But fear not, we have some simple solutions on what to do, and how to do it.
The Tax Foundation estimates that over the next decade, Biden’s plan would raise tax revenue by $3.05 Trillion, reduce GDP by 1.47 percent over the long term, and reduce jobs by over 600,000. This estimate has been lowered due to the effects of coronavirus, the economic downturn, and new tax credit proposal introduced by the Biden Campaign.
Summary of Joe Biden’s Tax Plan
Biden’s tax plan includes the following payroll tax and individual income tax changes:
- Imposes a 12.4 percent Old-Age, Survivors, and Disability Insurance (Social Security) payroll tax on income earned above $400,000, evenly split between employers and employees. This would create a “donut hole” in the current Social Security payroll tax, where wages between $137,700, the current wage cap, and $400,000 are not taxed.
- Reverts the top individual income tax rate for taxable incomes above $400,000 from 37 percent under current law to the pre-Tax Cuts and Jobs Act level of 39.6 percent.
- Taxes long-term capital gains and qualified dividends at the ordinary income tax rate of 39.6 percent on income above $1 million and eliminates step-up in basis for capital gains taxation.
- Caps the tax benefit of itemized deductions to 28 percent of value for those earning more than $400,000, which means that taxpayers earning above that income threshold with tax rates higher than 28 percent would face limited itemized deductions.
- Restores the Pease limitation on itemized deductions for taxable incomes above $400,000.
- Phases out the qualified business income deduction (Section 199A) for filers with taxable income above $400,000.
- Expands the Earned Income Tax Credit (EITC) for childless workers aged 65+; provides renewable-energy-related tax credits to individuals.
- Expands the Child and Dependent Care Tax Credit (CDCTC) from a maximum of $3,000 in qualified expenses to $8,000 ($16,000 for multiple dependents), and increases the maximum reimbursement rate from 35 percent to 50 percent.
- For 2021 and as long as economic conditions require, increases the Child Tax Credit (CTC) from a maximum value of $2,000 to $3,000 for children 17 or younger, while providing a $600 bonus credit for children under 6. The CTC would also be made fully refundable, removing the $2,500 reimbursement threshold and 15 percent phase-in rate.
- Reestablishes the First-Time Homebuyers’ Tax Credit, which was originally created during the Great Recession to help the housing market. Biden’s homebuyers’ credit would provide up to $15,000 for first-time homebuyers.
In a nutshell, if you make over $400,000 dollars, congratulations, your job is now figuring out a strategy on what to do to reduce your taxes. Luckily, we have you covered.
If you have loses, carry them over to 2021 under Biden’s higher tax rates.
In Estate planning, Biden wants to bring back double taxation of estates. The current exception amount is $11.58M, Biden’s proposal is $3.5M…if you are waiting to estate plan…don’t!
On the income tax side, push as much in 2020 under the trump rates as possible; take bonuses, convert your Roth IRA’s, differed comp. plans, and sell businesses. Do not wait, start today with your tax or financial advisor.
If you do not have one…we can point you in the right direction….and if you qualify we can save you up to $0.35 on every dollar you would have to pay to Uncle Sam.
104 thoughts on “Tax Planning Under A Biden Presidency”
tinder vs grindr
Tax Planning Under A Biden Presidency – Invito Energy Partners
black singles dating sites free
free dating sites in the usa
lava dating 24 hours free
free dating website uk
minnesota free online dating
american free online dating sites
free married dating websites
lds dating sites free
dating naked watch online free
100 free dating site in japan
free dating site in japan
mega file search engine free dating cherish
free top dating sites
aids dating site free
keto diet for cancer
what can you not eat on keto diet?
how many calories on a keto diet
black gay dating https://gaychatus.com/
gay nerdy dating memes https://gaydatingzz.com/
gay dating sites for daddies https://gaychatgay.com/
biggest gay dating sites https://freegaychatnew.com/
gay dating jacksonville fl https://gaydatinglosangeles.com/
chemistry dating gay review https://gayonlinedating.net/
gay dating in millitary https://gay-singles-dating.com/
chsitey the gay dating site https://datinggayservices.com/
gay diaper dating https://dating-gaym.com/
write my essay online https://essaywritercentral.com/
mba essay writing service https://essayghostwriter.com/
writing a literary analysis essay https://essaypoints.com/
best custom essay writing services https://essaysnet.com/
top write my essay https://essaytag.com/
custom writing essays https://onlinecasinos4me.com/
expository essay writing https://online2casino.com/
online spins https://casinosonlinex.com/
best casino welcome bonus https://casinoonlinek.com/
essays about writing https://dollaressays.com/
help writing an essay https://multiessay.com/
writing a biography essay https://buy1essay.com/
write my essay 4 me https://essaytodo.com/
2b sex games https://sexgameszone.com/
sex positions games https://sexygamess.com/
kissing and sex games https://sexgamesx.net/
sex scenes in video games https://sex4games.com/
full sex games https://cybersexgames.net/
online casino deutschland https://onlinecasinoad.com/
best casino online real money https://casinogamesmachines.com/
betting casino online https://conline-casinos-hub.com/
no deposit free bonus online casino https://casinoonlinet.com/
good keto snacks https://ketogenicdiets.net/
keto starbucks drinks https://ketogendiet.net/
keto chinese food https://ketogenicdietinfo.com/
tomatoes on keto https://ketogendiets.com/
legit essay writing services https://anenglishessay.com/
online essay writing service https://topessayswriter.com/
write my essay cheap https://yoursuperessay.com/
reflective essay on writing https://howtowriteessaytips.com/
gay dating who.pays https://gayprideusa.com/
coffee meets bagel gay dating https://gayfade.com/
dating website for gay men https://gaysugardaddydatingsites.com/
critical thinking apps https://criticalthinkingbasics.com/
skills worksheet critical thinking analogies https://criticalthinkinginstitute.com/
ati critical thinking https://criticalthinking2020.net/
teaching critical thinking skills https://uncriticalthinking.com/
how to start a essay https://choosevpn.net/
informative essay topics https://topvpndeals.net/
how to start an essay https://tjvpn.net/
essay check https://thebestvpnpro.com/
chicago style essay format https://vpn4home.com/
essay in mla format https://vpnshroud.com/
easy argumentative essay topics https://vpnsrank.com/
how to end an essay https://vpn4torrents.com/
essay editor free https://windowsvpns.com/
1educator
2wanting
gay dating sites that work on windows free https://gaypridee.com
gay dating sites that work https://gay-buddies.com
gay filipino dating https://gayprideusa.com
bi/gay dating apps https://speedgaydate.com
free gay dating sites grindr https://gayfade.com
gay dating app windows https://gaysugardaddydatingsites.com
xray gay chat https://bjsgaychatroom.info/
gay chubby dating https://gaypridee.com/
gay sissie video chat https://gaytgpost.com/
chat gay grstis https://gay-buddies.com/
biden gay boyfriend dating https://speedgaydate.com/
clearwater slots https://2-free-slots.com/
wms slots free online https://freeonlneslotmachine.com/
red hawk slots tournament https://candylandslotmachine.com/
son and moon slots https://pennyslotmachines.org/
d
aol slots lounge https://slotmachinesforum.net/
5.oo slots machine casino https://slot-machine-sale.com/
mirror ball slots https://beat-slot-machines.com/
sim slots https://download-slot-machines.com/
free slots to play online https://411slotmachine.com/
vegas slots online free https://www-slotmachines.com/
operation slots https://slotmachinegameinfo.com/
doctoral dissertation help https://buydissertationhelp.com/
dissertation writers online https://dissertationwriting-service.com/
cheap dissertation writing services uk https://help-with-dissertations.com/
easiest phd without dissertation https://mydissertationwritinghelp.com/
is a dissertation peer reviewed https://dissertations-writing.org/
18-month doctorate without dissertation https://helpon-doctoral-dissertations.net/