Biden and Trump Tax Plans
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Recently, both Joe Biden & President Trump have released details on their potential tax changes. Nothing is official or signed in as law but it gives you insight into the direction of the potential tax policy in the next 2-4 years.
Be sure to keep in touch with your tax planner to make sure you have the best plan no matter who is our next President.
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
Source: https://joebiden.com/joes-vision/
Source: http://www.crfb.org/papers/understanding-joe-bidens-2020-tax-plan
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