The White House is set on its $1.8 trillion American Families Plan.
It includes financing education, children, and childcare. How? Through tax hikes on the wealthiest individual taxpayers.
Here is how it is going to happen.
For high earners, your tax will go up from 37% to 39.6%. This is the level it was prior to the previous administration. This will earn the government $111 billion in the next ten years.
For heirs of larger estates, there is a loophole called the ‘step-up’. That allows heirs to avoid capital gains tax on an unlimited amount of previous untaxed appreciation in assets they inherit.
The proposal allows the first $1 million in passed-on gains from each person who dies to remain tax-free. That’s it.
For Wealthy investors, which includes everyone earning more than $1 million, you will be taxed long-term capital gains and dividends. All told, your federal tax will rise from 23.8% to 43.4%.
For hedge fund bigwigs, Biden wants to do away with the carried interest tax break. This allows hedge fund partners to treat a large portion of their compensation as long-term capital gains. As a result, they pay a much lower tax rate.
Lastly, high-earning real estate investors will see an end to the popular tax break connected with 1031 like-kind exchanges that let real estate investors defer federal capital gains taxes on a property by exchanging it for a different one.
The White House is out to tax those that, well, can pay more taxes.
Now, we are gold people. We will leave the analysis and commentary on that to political journalists and tax experts.
We are a gold & silver IRA company and we are here to get you access to assets that will protect your assets.
There are too many changes, too many unpredictable developments and it makes it even more critical for you to protect what you have. We don’t know if the taxes will grow faster than your gains with your riskier investments so put money on assets that will store the value of your wealth.
Gold, silver, platinum, and palladium.
Gold especially. It has been the go-to investment of billionaires. If they trust gold to protect their money, you should too.
