Tax Plan Breakdown: Biden vs Trump
It is important during this election year to keep in contact with your tax planner to make sure you have the best plan no matter who is our next President.
Both candidates, Biden and Trump have released details surrounding their potential tax changes. While none of this is law at this point, it gives you good insight into the direction of the potential tax policy in the next 2-4 years.
Biden’s Tax Plan (Potential)
- Increase The Corporate Income Tax Rate to 28%
- Impose 15% minimum tax on companies’ book income with credit for taxes paid to other countries for corporations with at least 100M in annual income
- Double the minimum tax on the profits earned by foreign subsidiaries of US firms from 10.5% to 21%
- Restore the top individual income tax rate to 39.6%
- Phase out small business income deduction above 400k
- Tax capital gains as ordinary income for taxpayers with over $1M in income and tax unrealized gains at death
- Cap itemized deductions (28% limit and Pease Limitation)
Increase the social security earnings cap
- Establish first Time homebuyers and renters tax credits
Impose a financial risk fee on large banks
- Increase the Child and Dependent Care Tax Credit
- Various other smaller tax policy provisions
Trump’s Tax Plan (Potential)
- Cut Taxes to Boost Take-Home Pay and Keep Jobs in America
- “Made in America” Tax Credits
- Expand Opportunity Zones
- Tax Credits for Companies that Bring Back Jobs from China
- Allow 100% Expensing Deductions for Essential Industries like Pharmaceuticals and Robotics who Bring Back their Manufacturing to the United States
As always, no matter who wins this year’s election we will continue to provide Realtor’s with the most up-to-date information and tax strategies to keep their bill as low as possible.
More details are expected to come out of each party’s plans. As we find out more, we will release the latest findings. But, I couldn’t think of a more crucial time to take care of your taxes than now. If you’d like to learn more, you can schedule a complimentary tax consultation below.