High income tax states like Massachusetts, New Jersey, California, and New York would appear to be winners if President Biden’s “Build Back Better” plan is finally passed by Congress. The Trump-era limit on state and local tax deductions could provide a $200 billion (or more) wind fall for wealthy Americans. As it stands now, Congressional Democrats, especially those who represent high tax states, are crafting a change in the SALT deduction cap. Presently American households can only deduct $10,000 of state and local taxes from their federal income taxes. That cap deduction is poised to end by 2026. In a…
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Tag: Build Back Better
The billionaire taxes
This week, the Democrats unveiled a new plan to finance President Biden’s “Build Back Better” legislation. That proposal, along with a 15% corporate minimum tax, has politicians scrambling to line up for or against the idea. Does it have a chance to pass? Credit for the idea goes to the Senate’s top tax expert, Finance Chair Ron Wyden (D-OR). His plan is to target only people with $1 billion in assets, or who are earning more than $100 million over three consecutive years. This group would be required to pay capital gains taxes each year on the appreciation in the…