How Will Biden’s Tax Plan Affect Individuals’ Making Under $400K Annually?

There has been A LOT of talk with our clients on the proposed Biden administration tax policy. This may affect people VERY differently based on if you make UNDER or OVER $400k annually. Biden’s tax plan focuses on raising taxes on corporations and affluent households, while increasing credits for moderate-to-lower-income households. With the slim Democratic control of Congress, changes outlined in President Biden’s tax plan have an increased likelihood of being implemented.  

When that will happen and in what form remains to be seen, however another round of tax law changes is likely on the horizon! 

Having adapted to frequent, and sometimes major, legislative changes in recent years (namely the TCJA, the SECURE Act, the CARES Act, and most recently, the American Rescue Plan Act), you could be concerned about what changes could be imminent but earning under $400K a year will likely benefit you. While recommendations may be premature, it is important to proactively understand potential future tax law changes. By familiarizing yourselves with President Biden’s tax plan now, you will be positioned to act and seize planning opportunities when changes are implemented. 

Any questions, we’re here for you!