The Potential Tax Implications if Joe Biden Wins The Election?
What does that mean for you and your taxes if Joe Biden wins? There are going to be a lot of changes that will potentially affect your taxes. We will list the key points and the source of the article(s).
Joe Biden has called for rolling back a lot of the Tax Cuts and Jobs Act, which trimmed income tax rates. He has proposed raising income taxes and Social Security taxes on wages over $400,000.
Long-term capital gains and qualified dividends would be subject to ordinary income taxes — 39.6% — for those with income over $1 million, and the step-up in basis at death would be eliminated.
Biden calls for raising the top individual income tax rate to 39.6% from 37%, and applying it to taxpayers with taxable income over $400,000, according to an analysis from the Tax Policy Center.
Biden proposes to limit itemized deductions, which include state and local taxes, medical expenses, mortgage interest and other deductions, to 28% for high-income taxpayers.
Biden proposes raising the corporate tax rate from 21% to 28%. In 2017, the corporate tax rate decreased from 35% to 21% under the TCJA, a hefty 40% dip that helped lead to an increase in the national deficit and triggered record stock buybacks at U.S. corporations.
Biden also proposes a minimum tax of 15% on corporations that earn $100 million or higher in on-book income, which is the amount reported on the company’s financial statements.
As the days go by, we will continue to monitor and update you on the latest tax updates. If you have any questions or need help, please do not hesitate to call us at (832) 295-3353. You can also set up an appointment with us at https://xqcpa-bookme.acuityscheduling.com/schedule.php.