America’s taxpayers will be protected from Biden’s new taxes by clever tax planning. They could also take advantage of old loopholes in order not to pay more than they have to!
The last time Congress passed a significant tax increase, Seinfeld won an Emmy award, Nirvana unplugged their guitars for MTV, and lawmakers wondered whether to vote for NAFTA. Early in Bill Clinton’s presidency, in 1993, Congress raised personal and corporate income taxes.
Since then, almost every tax bill in Washington has lowered them.
Navigate Tax Increases Strategically
The proposal approved by the House Ways and Means Committee increases the top rate for personal income taxes to 39.6% from 37%. Those with more than $5m in income would face an extra 3% levy; the top rate on capital gains would climb to 25% from 20%; and the top rate for corporate taxes would rise to 26.5%, partly reversing cuts passed under Donald Trump in 2017 (his signature legislative accomplishment). Voting on the bill may take place in the coming weeks, possibly wrapped into a package that also raises the debt ceiling.
The good news is that you can protect your wealth and minimize your taxes with some of the old loopholes by starting your tax planning today.
The bill will fail to close all loopholes. As it stands, someone who strikes it rich on properties or stocks can put those profits beyond the reach of the Internal Revenue Service so long as they hold on to their assets. If their heirs cash out, the basis for their capital-gains level would be the value of the assets at the time of inheritance.
Tax Planning Services – Start Now
Want to get a jump on your planning ahead of any new taxes? Click the calendar below to schedule a complimentary strategy session with the team.