Why CEOs Are Worried About The Latest Tax Law Changes?
Based on the latest tax law changes, CEOs are getting worried about a potential increase in corporate tax rate from 21% to 26.5%. To make it worse, there are other challenges including the challenge to hire qualified workers and slow recovery from the pandemic. Democrats have proposed a higher corporate tax rate with the intent to use the tax dollars to fund a $3.5 trillion reconciliation bill to tackle US poverty. In addition, Democrats have also proposed adding back the top individual income tax rate to 39.6%, a 3% surcharge on individual income above $5 million, and a capital gains tax of 25%. If you have not started tax planning for 2021, now is the time to start before it is too late!