With several financial proposals circulating in Washington, Schwab’s legislative and regulatory affairs representative, Mike Townsend, discusses which ideas are likely to be achieved. While Biden has proposed increasing the capital gains tax to 39.6% for those earning over $1M, it seems likely that the capital gains tax will only increase to 28% or 29%. Also, it seems unlikely that the elimination of step-up in basis at death will occur. Additionally, the infrastructure bill is facing headwinds from Republicans, as they would prefer to see funds go to state and local government instead of individual taxpayers. However, there seems to be bipartisan agreement on increasing the required minimum distribution age from 72 to 75.
At Brandywine Oak, we follow the proposals closely to anticipate changes and construct financial plans to minimize the impact of tax increases and maximize the after-tax returns for our clients. To learn more about these current proposals, please read Think Advisor’s https://lnkd.in/gB9THms.