Tax Update: Biden’s Made in america tax plan
The Department of the Treasury has issued new details regarding President Biden’s Made in America Tax Plan.
The administration is proposing a tax rate increase that will affect both corporations and individuals. The administration is also proposing several changes, including a corporate tax rate increase from 21% to 28%, implementation of up to a 15% minimum tax on corporations that report large book income yet low taxable income, and incentives for clean renewable energy in exchange for decreased subsidies in the fossil fuels industry.
For individuals, the impacts will be felt primarily by households earning more than $500,000, with a rate increase in the top tax bracket from 37% to 39.6%. Additionally, Biden has proposed a nearly double capital gains rate increase for households earning $1 million or more, as well as a change to estate tax treatment of bequests that are not charitable contributions.
There will also be a push to extend key tax cuts implemented in recent years, including the Child Tax Credit, Earned Income Tax Credit, and Child and Dependent Care Tax Credit.
Check back here for more information as these plans are solidified and enacted by lawmakers, as well as analysis on the impacts to your personal and business tax returns.