The major task that was at hand when Joe Biden came into office was to prevent the further ballooning of the U.S. economy and chip away at the debt at hand. The easiest route for any leader to establish is raising taxes to quickly make a dent in what was lost. This is the route that President Biden is taking as he and his staff are strategizing on increasing taxes. A tax spike will take away more from the working class to the economy.
The following are the 5 tax increases that President Biden is seeking to solidify:
- Raising Corporate Income Tax – raising corporate income tax from 21% to 28% is a large spike as most businesses incurred a loss in the year 2020, to now barely meet ends meet with the new tax bracket.
- Global Intangible Low-Taxed Doubled – this rate has been rumored to be going from 10% to almost 22%.
- Top Tax Rate For $400K Earnings – 37% was the previous percentage which will now be at 39.6% for people earning $400,000 or more.
- Capital Gains Taxation – for people making over $1 million dollars for the year, the top tax rate is being raised to 39.6%.
- Estate Tax – for estates with assets of more than $1 million, the tax rate will increase from 40% to 45%.
Biden’s tax plan has been a plan that is reminiscent of the days of President Obama. With all of the uncertain events that occurred last year, it only makes sense for these tax spikes to come to fruition. The tax experts at MBA Financial & Accounting Solutions have been preparing and researching the different tax strategies that are being implemented to better serve you. With tax season in full swing, our tax specialists are by the phone ready for you to call. Filing taxes for the year 2020 can be tricky, given all that happened last year. But don’t worry one bit, MBA Financial & Accounting Solutions has you fully covered to make this tax season simple and easy to file.