So Bureau of National Affairs has put out the President’s road map of his tax plan. I’ve included the actual PDF in here for everyone’s viewing. I do have to make note of some items that caught my eye…
To compare the SALT limitations – So in simpler terms (how I interpret) the SALT cap that is currently in place and maxed at $10,000 (under the Trump Administration). This $10,000 is the TOTAL allowed deduction for state and local taxes (SALT acronym) PLUS your property taxes on your primary residence/home. To help visualize the $10,000 deduction – this amount is reported on a Schedule A – “Itemized Deductions” if you are claiming these types of deductions when you file your Form 1040 each year. This form is to report your property taxes paid on your primary house, state and local taxes paid, mortgage interest, donations to charity, etc. etc.
Now since President Biden is wanting to eliminate the SALT cap – removing this $10,000 maximum amount. Who does this deduction benefit more, now? If you now can deduct more than $10,000, for this simple example? People who have the ability to own large properties or a primary residence AND a secondary residence? Some things for all of us to think about.
Here’s another TAX that caught my eye – it’s the “Transaction Tax” for buying OR selling stocks, bonds and/or derivatives:
Why I ask? Granted if you sell a stock at a gain, you will pay a tax on that gain (the tax paid will depend on the stock being a long term held stock or short term held stock). But if you sell a stock at a loss – similar to a loss in a business – you DO NOT pay a tax because you lost money essentially in that stock. However, President Biden supports this “transaction tax” whether you buy or sell a stock, bond or derivatives of stocks, etc. AGAIN – Why??
And the other one that caught my eye was the Corporate Tax increase and possible “Carbon Tax”:
So I just wanted to share this out there to everyone if you’re not aware of what President Biden may do for future taxes. Again, the PDF of his entire tax road map is included in the link at the beginning of this blog.
This adds on to my previous blog: President Biden’s Economic Policies