Proposed Tax Changes & How to Plan for Them

Lauren Smith |
Here are a couple of the proposed tax changes and what they mean.

How We Can Help You  Book an Initial Consultation


Today I’m discussing Biden’s proposed tax plan. Nothing is set in stone, taxes haven’t changed yet, and I don’t think it’s likely that they’ll change this year or in 2022. My goal today isn’t to get political but to talk about the facts from a financial advisor’s point of view. I’m sharing a couple of the proposed tax increases and providing some ideas for how to plan for them.

Feel free to watch the full message above, or use these timestamps that will direct you to various points in the video:

0:15 — Introduction to today’s video

0:30 — Why I don’t believe taxes will change in 2021 or 2022

2:05 — The proposal to change the top ordinary income tax rate from 37% to 39.6%

2:50 — If you can bring income you’ll have in 2022 into 2021, I suggest doing so

4:00 — The proposal to change the capital gains rate on income of $1 million or more from 20% to 39.6%

5:20 — If you have capital gains you can take this year, I suggest doing so

6:00 — Wrapping up today’s topic

I only hit on a couple of the proposed tax law changes, so if you have any questions, concerns, or comments about Biden’s proposed tax plan, give me a call or send an email. I’d be happy to help you.

The information contained in this blog does not purport to be a complete description of the securities, markets, or developments referred to in this material. The information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete. Any opinions are those of the author, and not necessarily those of Raymond James. Expressions of opinion are as of this date and are subject to change without notice. There is no guarantee that these statements, opinions, or forecasts provided herein will prove to be correct.

Every investor's situation is unique and you should consider your investment goals, risk tolerance, and time horizon before making any investment. Investing involves risk and you may incur a profit or loss regardless of the strategy selected. The foregoing is not a recommendation to buy or sell any individual security or any combination of securities. Be sure to contact a qualified professional regarding your particular situation before making any investment or withdrawal decision.