In this high level overview, we focus on the tax proposals that could significantly impact our clients and their planning. In future commentary, we will drill down into the specific proposals.
Estate Taxes: The Senate Budget Committee, led by Senator Bernie Sanders, recently released the “For the 99.5% Act.” This legislation proposes significant changes to the current estate tax regime beginning on 1/1/22:
Step-Up IN Basis: Under current estate tax law, when an individual dies, the cost basis of their assets are “stepped up” to market-value, therefore there is no taxable gain upon death. Recently, several Democratic Senators have proposed the following changes:
Income Taxes, Payroll Taxes, and Capital Gains: Legislation has not been drafted as of this date, however, several ideas have been floated by the Biden administration: