Tax Hikes | Covid Relief Bill | Palma Financial Services

[cs_content][cs_element_section _id=”1″ ][cs_element_layout_grid _id=”2″ ][cs_element_layout_cell _id=”3″ ][cs_element_image _id=”4″ ][cs_element_text _id=”5″ ][cs_content_seo]Democrats tucked in a trio of little-noticed tax hikes on the high-income people and large corporations

The surprise tax hikes on corporations in President Biden’s sweeping coronavirus relief package that combined are worth more than $60 billion.

One provision extends a cap on how unincorporated business owners can deduct losses against their non-business income to reduce their tax liability. The Democrats’ coronavirus plan stops short of undoing last year’s provisions, though it does extend the $500,000 limit — which, like much of the Tax Cuts and Jobs Act, is currently scheduled to expire at the end of 2025 — by an additional year.
Another takes away deductions for publicly traded companies that pay top employees more than $1 million. Another provision cracks down on how multinational corporations do their taxes.
The third clamps down on how multinational corporations do their taxes.

Democrats ran into problems complying with the stringent budget rules surrounding so-called reconciliation measures like the coronavirus legislation — especially after some wanted to add provisions like one waiving taxes on unemployment benefits.

The tax increases help keep the plan’s cost in check and have the political benefit of being abstruse.

Some say the coronavirus package offers a hint of what’s to come. It is a signal that Democrats will look to high-income people and large corporations for revenue for the infrastructure package.

Want us to perform a tax assessment of the pre and post-Biden tax law?

Let’s chat. You can book an appointment here.\n\n[/cs_content_seo][cs_element_layout_row _id=”6″ ][cs_element_layout_column _id=”7″ ][cs_element_button _id=”8″ ][cs_content_seo]Book Your Assessment Today!\n\n[/cs_content_seo][/cs_element_layout_column][/cs_element_layout_row][cs_element_headline _id=”9″ ][cs_content_seo]Miguel A. Palma, CPA, PFS, CGMA\n\n[/cs_content_seo][cs_element_text _id=”10″ ][cs_content_seo]Founder of Palma Financial Services, Inc.
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