Forbes has published an article, “Biden Retroactively Doubles Capital Gain Tax But Keeps $10M Benefit,” which discusses the Biden’s administration tax proposals. The article begins as follows:
Tax hikes are coming—in fact, they are already in force, assuming they are passed as proposed. The “it’s already effective” rule is designed to prevent selling to get in under the wire. Whether that strategy will work depends on how good your crystal ball is. Make no mistake, these tax hikes pack a punch. The Biden administration’s so-called “Green Book” has nothing to do with the environment, and everything to do with tax hikes. The General Explanations of the Administration’s Fiscal Year 2022 Revenue Proposals are not mere tweaks to the tax code. Right now, there is a top 37 percent tax rate. You don’t hit that rate until (as a married couple) you have over $628,300 in taxable income. The Biden proposal would raise the top marginal rate to 39.6 percent beginning December 31, 2021, for couples with over $509,300 in taxable income. The capital gain hikes are more ambitious. Instead of top rates of 20% plus the 3.8% Obamacare tax, you lose out entirely on capital gain rates if you make more than $1 million. You will now pay 39.6% plus the 3.8% Obamacare tax, for a whopping 43.4%. And here’s the kicker: that capital gain tax hike is already in effect, retroactively to the date Biden first announced his proposal to Congress on April 28, 2021.
Click here to see full article: “Biden Retroactively Doubles Capital Gain Tax But Keeps $10M Benefit.”
Posted by Bella Hoang, Managing Associate Editor, Wealth Strategies Journal.