While it is still too early to draw any final conclusions, Congress is getting closer to outlining what tax law changes are being considered to fund the proposed $1.75 trillion Build Back Better Plan. 1
Tax Law Changes Considered
Changes to capital gains and personal tax rates appear to be off the table for the time being. The focus is shifting to a new corporate minimum tax, though changes to estate taxes may still be considered. 1
Investors rejoiced as some of the tax-law uncertainty was removed. The Standard & Poor's 500 stock index gained nearly 7% in October. 2
While some initiatives have faded into obscurity, others are gaining traction. A growing number of people appear to be warming to the idea of a "billionaire's tax," a special tax aimed at the 800 or so richest Americans. 3
Critics of the billionaire's tax point out that when the Alternative Minimum Tax (AMT) was introduced in 1969, it was aimed at 155 individuals with adjusted gross incomes of more than $200,000 who paid no federal income tax on their 1967 tax return. However, by 2017, nearly 5 million taxpayers had been assessed a minimum tax. 4,5
"It ain't over till it's over," baseball legend Yogi Berra said after his 1973 New York Mets were eliminated from the National League Pennant race. (The Mets eventually won the pennant but were defeated in the World Series by the Oakland A's in seven games.) 6
Please reach out if you're feeling unsettled as Congress continues to work on these tax law changes. Or call us if you want to talk about World Series baseball.
1. CNBC.com, October 25, 2021
This article is for informational purposes only and is not a replacement for real-life advice, so make sure to consult your tax, legal, and financial professionals before modifying your overall tax strategy.
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The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG Suite, LLC, is not affiliated with the named representative, broker-dealer, state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information and should not be considered a solicitation for the purchase or sale of any security.
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