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Wolters Kluwer created a comprehensive analysis on what a Biden win means to 2021 tax policy and beyond. We have been following the updates and wanted to share the information with you. Highlights include:
· Senate control is still undecided due to the run-off elections in Georgia. The Democrats need to win both seats to get a 50-50 split between Democrats and Republicans, which would leave VP Elect Kamala Harris as the tie-breaking vote.
· Without a Senate majority, it may be difficult for Democrats to pass overarching tax changes without bi-partisan support.
Biden’s Proposed Tax Plan:
· Increase highest marginal tax bracket for individuals from 37% to 39.6%
· Increase capital gains tax rate on highest individual earners from 23.8% to 43.4%. This would be imposed on those making over $1M annually
· Expanding the earned income tax credit and dependent care tax credits for individuals
· Limiting itemized deductions on individuals earning over $400,000
· Increasing the corporate tax rate from 21% to 28% and imposing a minimum tax on corporations with book profits of $100M or more
· Phasing out the 20% Qualified Business Income Deduction for individuals with income exceeding $400,000
You can download the full PDF from Wolters Kluwer in the "Downloads" section of our website.
Reach out to Mollie or Brendan if you have any questions or concerns on the proposed tax changes.
To be continued…
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