https://www.fidelity.com/learning-center/wealth-management-insights/biden-budget-proposal The top individual income tax rate would rise to 39.6% from 37% for income above $400,000 (single filers) or $450,000 (married filing jointly). The net investment income tax rate would rise to 5% from 3.8% for those earning more than $400,000 in regular income, capital gains, and pass-through business income combined. The additional Medicare tax rate for those earning more than $400,000 would also increase to 5% from 3.8%. Qualified dividends and long-term capital gains would be taxed as ordinary income, plus the net investment income tax, for income that exceeds $1 million. Transfers of property by gift or death would trigger a tax on the asset's appreciated value if in excess of the applicable exclusion. Roth IRA conversions would be prohibited for high-income taxpayers, and "backdoor" Roth contributions, where after-tax traditional IRA contributions can be rolled into a Roth IRA despite income limits, would be eliminated.
What else is new. Keep taxing the “rich” so to speak. You need to get money to fund those services somewhere
400k isn’t rich in Bay area
Exactly. Hence the quotes
Yeah. Dems need to be out.
Please. Some of the highest taxes were levied by Republican presidents. Lincoln, Hoover and Bush.
Red herring. The argument is about current tax policies not past.The current Republicans which I'm not a big fan of will reduce taxes.
Makes more sense to be not married. I think I should “divorce” my wife on paper to escape the taxes. 🤔
Unless you are also claiming 2x mortgage interest deduction, you can just file separately (assuming you exceed the standard deduction)
Or file separately?
News ignorant here when could this take effect if passed?
Next year, but it's unlikely
$400,000 is not rich in California. They need to raise that number for this to make any sense.
I wonder how you would see this if your Annual income were $399,999. There's bound to be bias if these changes affect us.
Your tax doesn't suddenly jump if you earn one dollar above 399999 lol. Only the money you earn above that amount is taxed at the higher rate
The excuse for the estate tax is that there is no capital gains tax. Now you get both. What would be left of an inherited home?
They want you to sell back to corp
The stepup basis on death thing doesn't make sense. It shouldn't exist. Honestly, the 1031 like-kind exchange shouldn't either
No shit. Go read tax reform act of 1969 signed by Nixon. Before that reform people making above 200k were not paying their fair share, some paying 0. This is a proposal. Even though I don’t believe in “fair world hypothesis”, taxes are what we pay to live in a civilized society.
How about we start backwards and hit the billionaires. I’m sure they can take a few extra points.
Define “fair”. Use concrete terms and not emotional language. Top 1% of earners pay 40% of all tax revenues. Top 10% pay 73%. So what’s fair? Again, use real terms. Top 1% paying…what % of revenues would be “fair”?
When are we getting a wealth tax though? Bro keeps going after middle to upper middle and can't just go after the guys with huge business holdings. guess where are those political contributions coming from then
NVIDIA, hard to care about your first world problems lol
Well you fucking nerds don’t contribute enough to his election fund. The rich do.
Yo I vote blue because republicans are batshit crazy but fuck this proposal. This is my bottom line. I’m emailing my congressmen and if this goes thru fuck it I might vote to put a lunatic in office again.
If you are in a blue state rest assured your blue party congressman wouldn’t give a flying fuck
Still better than doing nothing.
Ridiculous.