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Biden/Harris Tax Proposals
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22 Jan Biden/Harris Tax Proposals

Posted at 20:58h in OUR INSIGHTS by

Biden/Harris Tax Proposals

 

  • Increase corporate tax rate from 21% to 28%
  • Large companies pay greater of normal tax or 15% of book income
  • Real estate like-kind exchanges eliminated
  • Top individual rate increase from 37% to 39.6% (for those “earning” over $400,000)
  • Raise top capital gain rate from 20% to 39.6% (for those with gains over $1 mm)
  • Eliminate basis step-up at death
  • Wages over $400,000 taxed at full social security tax rate (creates donut hole between $142,800 and $400,000 that will shrink over time)
  • Cut estate tax exemption in half
  • Limitations on itemized deductions at higher incomes (only 14% of filers itemize) – restores Pease limitations
  • Dividends are taxed similar to capital gains
  • Deduction for 401(k) and IRA converted to tax credit to equalize benefit across income levels
  • Not a wholesale elimination of the TCJA that President Trump’s administration enacted
  • First-time homebuyer credit
  • Forgiveness of federal student loans
  • Repeal of SALT limitations
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