He has promised to repeal the cuts. What do you NOT understand about this? Middle class families benefit from the Trump tax cuts. They will not anymore under Biden.
Here’s how the Biden administration’s recently enacted tax law changes—and new corporate and individual tax proposals—do (or could) affect taxpayers.
www.investopedia.com
Biden's actual tax plan preserves the benefits to the middle class.
Yes, I have vomit about two paragraphs in....
First paragraph is complete BS.
The Biden tax plan would repeal the major tax reductions passed in 2017; it would increase the top individual federal income tax rate from 37% to the pre-Trump rate of 39.6% and the corporate rate from 21% to 28%. The tax benefit afforded itemized deductions would be capped at the 28% tax rate. Tax rates would be graduated so that taxpayers with incomes below $400,000 would not see rate increases.
The first sentence says it all...no other explanation necessary.
What does this mean? You can't use itemized deductions to bring your effective tax rate under 28%? Cheez, that is a tax hike for many Americans making far less that 400k per year.
They are going to tax capital gains at the same rate as income for those making more than 1 million/yr? Yeah, that won't hurt investment at all. Capital gains taxes are already a disincentive for investing. Really, they should be eliminated, not raised.
The plan also indicates that a Biden administration would promote tax provisions to penalize exporting jobs overseas and to incentivize investments in infrastructure and green energy, transportation and manufacturing. Businesses would be offered a variety of new tax credits, ranging from benefits to deal with workforce layoffs to small business incentives to provide retirement savings plans.
This is just pie in the sky fantasy world stuff. We will be far, far less competitive on the world stage. Maybe that is their plan because it is almost inconceivable that anyone could think this would actual work.
Depending on the design of the new provision, the impact on high-income taxpayers could be substantial. For example, if the proposed revision of the 401(k) contribution benefit entitled a taxpayer with a marginal tax rate of 35% to a 20% tax credit instead of the present law’s tax deduction, the tax savings for the current, maximum annual contribution of $19,500 would decline from $6852 to $3900.
This is beyond ridiculous. For starters, what is "high-income"? They use the 35% example, but they don't say it will be limited by income level but rather by contribution amount. There are plenty of people that max out their 401(k) contribution every year but do not make 400+k. Using their example, this would cost them about $3000 in additional taxes per year. Guess what, they won't invest or not nearly as much. I know I won't. I will take my money elsewhere. Another idiotic idea.
The second change would repeal the present law “step-up in basis” rule that increases the tax basis for inherited assets to their full fair market value upon death.
What a crock. This will hurt everyone. God forbid people can't keep their families wealth. I mean, there are plenty of irresponsible folks out there that should get that redistribution. If your granny left you a house that she purchased for 35k many moons ago and you inherit it with it and it now has a value of 85k, you will have to pay tax on the 50k "gain" instead of getting the step up basis. I guess they forgot he part where granny paid property taxes for many, many years on this house. They need more money to distribute. Envy at its finest.
This great country was not built on the idea of wealth distribution. We became the greatest economic power on earth with just the opposite approach. Democrats are nothing more than lazy, envious, immoral, ignorant, unpatriotic heathens who are either trying to destroy on purpose or are too stupid to know that this is their policies lead.
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