The Biden American Families Plan was announced in the White House briefing room in late April of 2021. In the words of the President, this plan is an investment in the kids, families, and economic future within the country.
Fast forward four months, and where do we stand? What is the status of the Biden Capital Gains tax? Let’s find out more.
The Latest News
As of mid-August, the Senate Democrats passed a $3.5 trillion budget blueprint. In this plan, extra spending would be allocated to specific sectors, including:
- Health care
- Climate initiatives
- Paid leave
Where is this money going to come from? The increased tax rates for capital gains of the wealthy in the nation.
Capital Gains Tax Rate Details
The current highest tax rate for capital gains sits at 20%, but this rate will bump up to 39.6% under President Biden’s capital gains tax. Although it is a significant increase, this rate will only impact investors who earn more than $1 million annually.
While this capital gains tax rate increase will not impact most people, it’s still essential to understand what it entails. Also, it’s crucial to remember that the terms of the proposal may still change as it moves its way through legislation.
How to Be Proactive
If you think you might be impacted by the Biden Capital Gains tax or are just generally interested in reducing your exposure to capital gains tax, here are a few ways to be proactive.
- Invest in separately managed accounts (SMAs)
- Utilize tax-loss harvesting
- Max out contributions to tax-deferred retirement accounts
- Invest in municipal bonds
Call Primary Payroll Services Today!
At Primary Payroll services, you will always receive our highest levels of customer service whether you’re looking for payroll assistance or guidance on the Biden Capital Gains tax. Primary Payroll services is a smaller company, which means we have the luxury of dedicating ourselves wholly to our clientele rather than getting lost in the shuffle with the larger corporations.
Let our payroll experts at Primary Payroll Services assist you with selecting the right payroll services for your business needs. Call us at 562-595-0066 or request a free quote online.