Tax Season 2021

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Tax Hikes are coming and what to do to prepare

Picture of President Joe Biden and Vice-President Kamala Harris and Tax Hikes

Tax Hikes are Back 🙁

Taxes are back into the mind of legislators as they debate on who will pay for the newly proposed 4.5 trillion dollar infrastructure bill.

On Sunday, the Ways and Means Committee released their draft proposal that advanced this week on who specifically the bill affects by an increase in corporate and individual taxes.

What’s does Biden's 4.5 trillion bill includes?

  • Top individual tax bracket of 39.6%
  • Top Capital Gains rate of 25%
  • Additional 3.8% NIIT to apply to all ordinary business income
  • Wealth tax of 3% on those who make over 5 million dollars
  • Limitations on retirement accounts for individuals
  • Ending the doubled estate tax exemption in 2022
  • Limitations on the amounts of QBID allowance

The bill is over 800 pages and this is the breaking point for debate; there are differences from what President Biden proposed back when he released the American Jobs and the American Families plan back in April this year.

There are also debates over retroactive dates, which could extend to transactions as early as September 2021.

How do you plan for the unpredictable tax future?

We are helping our clients prepare for the tax changes. Would you like insight into how these changes may affect you, and what steps to take before these changes become law? I’d love to jump on a free zoom call with you:

There's a huge chance that your business will overpay taxes this year!

 We can help you increase your cash flow through the implementation of tax planning by defining where in the records your profit is hiding within. Get in touch with a tax specialist today!

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