Tax and financial advice from the Silicon Valley expert.

No federal tax increase, for now

Yesterday, June 24, 2021, President Biden announced a “deal” has been reached by a group of bipartisan U.S. Senate negotiators for his Infrastructure Spending plan.

The agreement includes more modest spending provisions than Biden’s original plan.

Many high income and high net worth taxpayers will be relieved to learn that his major revenue proposals, including a major tax increase for long-term capital gains, repealing Section 1031 exchanges for real estate, and repealing stepped-up basis for inherited property, are NOT included in the agreement.

The principal source of funding is better enforcement of the current tax laws, which means more federal income tax audits in the future.

The agreement still has to be approved by Congress. President Biden says he will accept the plan.

We still might see tax reform proposals in the future, but it looks like they won’t be in the forefront for now.

Tax and financial advice from the Silicon Valley expert.