Thursday, May 13, 2021
On April 28, 2021, the White House issued a fact sheet which set forth some additional details on the tax increase proposals contained in President Biden’s “American Families Plan.” Many of these tax increases are focused on taxpayers having taxable income in excess of $1 million.
Reinstatement of the 39.6% Tax Bracket
Among the significant proposed tax changes is the reinstatement of the 39.6% tax bracket which was eliminated in the 2017 Tax Cuts and Jobs Act.
Increase to the Capital Gain Rate
A proposed tax increase that will likely significantly affect M&A activity and the real estate market is an increase to the capital gain rate for “households with income in excess of $1 million.” Under this proposal, the capital gains rate would be equal to the top rate applicable to individuals, which under the President’s proposal would be 39.6%. It is assumed that this 39.6% rate would apply to the portion of capital gain in excess of $1
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On April 28, 2021, the White House issued a fact sheet which set forth some additional details on the tax increase proposals contained in President Biden’s “American Families Plan.” Many of these tax increases are focused on taxpayers having taxable income in excess of $1 million.
Reinstatement of the 39.6% Tax Bracket
Among the significant proposed tax changes is the reinstatement of the 39.6% tax bracket which was eliminated in the 2017 Tax Cuts and Jobs Act.
Increase to the Capital Gain Rate
A proposed tax increase that will likely significantly affect M&A activity and the real estate market is an increase to the capital gain rate for “households with income in excess of $1 million.” Under this proposal, the capital gains rate would be equal to the top rate applicable to individuals, which under the President’s proposal would be 39.6%. It is assumed that this 39.6% rate would apply to the portion of
[co-author: Tony Meyer Jr.]
On Wednesday, April 28
th, the White House announced the American Families Plan, the “human capital” infrastructure proposal. The American Families Plan would spend $1.8 trillion, including $800 billion in tax cuts over ten years, offset by $1.5 billion in new taxes over the same period. This blog summarizes the tax provisions of the American Families Plan.
Tax Cuts
The American Families Plan proposes extending the expanded Affordable Care Act premium tax credits and the expanded Child Tax Credit enacted under the American Rescue Act, and making the Child Tax Credit, the Child and Dependent Care Tax Credit, and the Earned Income Tax Credit fully refundable on a permanent basis.
On Wednesday, April 28
th, the White House announced
the American Families Plan, the human
capital infrastructure proposal. The American Families Plan
would spend $1.8 trillion, including $800 billion in tax cuts over
ten years, offset by $1.5 billion in new taxes over the same
period. This blog summarizes the tax provisions of the American
Families Plan.
Tax Cuts
The American Families Plan proposes extending the expanded
Affordable Care Act premium tax credits and the expanded Child Tax
Credit enacted under the American Rescue Act, and making the Child
Tax Credit, the Child and Dependent Care Tax Credit, and the Earned
Income Tax Credit fully refundable on a permanent basis.
Tax Provisions of the American Families Plan Thursday, May 6, 2021
On Wednesday, April 28
th, the White House announced the American Families Plan, the “human capital” infrastructure proposal. The American Families Plan would spend $1.8 trillion, including $800 billion in tax cuts over ten years, offset by $1.5 billion in new taxes over the same period. This blog summarizes the tax provisions of the American Families Plan.
Tax Cuts
The American Families Plan proposes extending the expanded Affordable Care Act premium tax credits and the expanded Child Tax Credit enacted under the American Rescue Act, and making the Child Tax Credit, the Child and Dependent Care Tax Credit, and the Earned Income Tax Credit fully refundable on a permanent basis.