DiscoverYoung Smart MoneyJoe Biden's Tax Plan Will Raise Your Taxes (Full Explanation)
Joe Biden's Tax Plan Will Raise Your Taxes (Full Explanation)

Joe Biden's Tax Plan Will Raise Your Taxes (Full Explanation)

Update: 2020-11-11
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Joe Biden's tax plan, while tailored specifically to increase taxes for the wealthy, will almost certainly impact your tax situation. In this video, I break down the full implications of Joe Biden's proposed tax plan and what that means for you.


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With Joe Biden's stance on taxes being quite a bit different from Donald Trump's we can expect some significant changes in tax policy during the next administration. In general, this means higher taxes across the board but specifically targeted at high-income earners.


Joe Biden's tax plan specifically identifies individuals making $400,000 or more as high-income earners and these individuals will take most of the increases in individual income tax. Some high earners will even see their combined marginal tax rate rise to over 60%, the highest we have seen since the 1980s.


However, there are also a number of changes likely to come to investment taxes, gift and estate taxes, and corporate taxes that will impact those not making $400k or more.


Under Joe Biden, capital gains rates will almost certainly rise for individuals making over $1 million per year. These folks will likely see their capital gains rates rise to their income tax rates, resulting in a potential sell-off in the markets as investors lock in lower capital gains rates.


At the same time, Biden has stated he would like to lower the gift and estate tax exemption from over $11.5 million down to $3.5 million. The top gift tax bracket would also rise from 40% to 45%.


There are also a number of changes likely showing up in the step up in basis rule that would eliminate this feature of the tax code and corporate income taxes that would result in large companies paying more in taxes.


In addition, there are a number of additional credits and deductions that Biden hopes to expand including the child tax credit and childcare tax credit. Most of the credits on Biden's agenda would aim to benefit lower-income earners.


TIMESTAMPS

0:00 INTRO

0:46 Disclaimer

0:58 Changes To Individual Income Taxes

2:20 Changes To Social Security Taxes

3:15 60% Marginal Tax Bracket Example

4:42 Other Changes To Individual Income Taxes

5:44 Changes To Capital Gains Taxes

7:14 Eliminating Step Up In Basis

8:36 Changes To Gift and Estate Taxes

9:55 Changes To Corporate Income Taxes

12:25 Proposed Tax Breaks From Joe Biden

12:40 Child Tax Credit

13:33 Childcare Tax Credit

14:00 Other Proposed Tax Breaks

15:09 Outro

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Joe Biden's Tax Plan Will Raise Your Taxes (Full Explanation)

Joe Biden's Tax Plan Will Raise Your Taxes (Full Explanation)

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