On September 13, 2021, the US House Ways and Means Committee released the Build Back Better Act (BBBA), which aims to spend $3.5 trillion dollars on various social programs.
To try to make up for this enormous spending, the Act also contains multiple provisions aimed at raising taxes for the rich — one of Biden’s main presidential campaign promises.
We are happy to announce that the bill is somewhat “less bad” than anticipated, and most of the tax hikes and restrictions would apply only to those earning over $400,000 a year.
Still some of the most harmful provisions, applied to retirement accounts, would affect everyone.
If passed as proposed, the Build Back Better Act will mean that many Americans would have to pay more in taxes, and all Americans would have fewer investment choices in their retirement accounts.
Yet, this bill is not yet the law, and currently, it’s impossible to tell which of the provisions will make it into the final version.
But even if a portion of these new provisions survives, it can still affect you in a serious way.
That's why we took the time to analyze and present the potential tax changes. And that’s why we looked into what can be done today to neutralize some of the bill’s worst proposals if they get passed.
Forewarned is forearmed.
Study this report and discuss the proposed changes with your tax advisor to see which of the proposals can affect you personally if passed, and to determine which strategies you could utilize to counter them.
But you may need to hurry up. If passed, most of the proposed changes will become active on January 1 of next year, in less than two and a half months. You may have to implement your mitigation strategy(-ies) before that date.
One of the main themes in Biden’s presidential campaign was the promise to “tax the rich.” Raising the corporate tax rate to 28% and long-term capital gains tax rate to 36.9% were on the cards, as well as slashing the lifetime gift and estate exemption to just $1 million from the current $11.7 million (among…
