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.
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