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Archive for Tax Increases

Biden’s ‘Death Tax’ Will Harm Middle-Class Families Making Far Less Than $400K A Year

Biden's 'Death Tax' Will Harm Middle-Class Families Making Far Less Than $400K A Year

TaxConnections thanks the Westerm Journal for their permission to post this article written by Eric Nanneman.

For many moderate Americans who were afraid of voting for a traditional tax-and-spend Democrat, this assurance may have tipped the balance to win their vote.

But as Biden unveiled his American Families Plan — which promises two years of free community college education, 12 weeks of paid family and medical leave, expanded unemployment benefits and more — there was an ugly truth hidden near the bottom.

Death Tax’ Greatly Expanded

Currently, the estate tax exemption stands at $11.7 million, meaning that when an owner of an estate passes away, the heirs are only taxed on the amount exceeding $11.7 million, or $23.4 million for couples. So, if an unmarried son inherits a $20 million estate, he would pay taxes on $8.3 million.

Biden’s drastic plan cuts the $11.7 million exemption all the way down to $1 million.

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Want To See The Biden Administration Tax Increase Proposals?

U.S. Treasury Green Book

During the Memorial Holiday weekend, the U.S. Department of Treasury released the Biden Administration’s Fiscal Year 2022 Budget and what is called the Green Book making proposals for 2021 tax reform. One of Biden’s proposals for 2021 is a retroactive Capital Gains tax increase to 37% for combined household incomes of 1M or more. The proposals include tax increases in capital gains, corporate taxes, adding a 15% tax rate on corporations with more than 2B of book income, double the global GILTI tax rate on foreign sourced income, increase in taxes on high income earners, eliminating like-kind exchanges, increase individual taxes to 39.6% ($452,700, $509,300 for joint filers), increases in estate taxes, and the list goes on.

We know the tax community will take a deep dive into these tax increase proposals and we appreciate all the feedback and commentary on them. As lawyers, CPAs, EAs, and financial services professionals, you see the impact to taxpayers up front and personal. Your comments and valuable insight on these proposed tax hikes are extraordinarily important to taxpayers worldwide.

You can view and download the U.S. Treasury Green Book here.

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Call To Action: Tax Professionals Wanted With Client Tax Stories And Tax Penalties

Call To Action: Tax Professionals Wanted With Client Tax Stories And Tax Penalties

TaxConnections is calling out to tax professional members who will tell real-life stories of clients impacted by the changes in tax laws, tax increases and tax audits. Our digital tax platform is one where tax experts and taxpayers connect around the world. More than ever, people are affected by tax increases in local, state, federal and international tax jurisdictions. Last November 2019, a blog titled “Shocking Behind The Scenes Story: Tax Professionals Advocating For Taxpayers On 3520-A Penalties” which created hundreds of comments on the topic of taxpayers being treated unfairly. If you read the comments you will discover the unwanted and difficult positions taxpayers were faced with on this issue. The point is we know there are many tax stories in the hands of TaxConnections Members that we need to bring to the attention of taxpayers.

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