What you need to know
- Along with higher corporate tax rates, Biden will focus on high-income individuals to fund the plan, lawyers say.
- The President and Congress want to raise the current tax rate on inherited property. Some Democrats want a rate of 60% of every dollar over the $ 3.5 million exclusion.
- Another reform would change the management of capital gains at death by eliminating the increase in the base.
To settle the bill for President Joe Biden’s new $ 2 trillion infrastructure plan, the administration is weighing corporate income tax rules, which is likely to be followed soon by a new tax plan.
This has tax and estate planning attorneys reading the fine print to help clients avoid litigation with the IRS.
Stanley I. Langbein, a professor in the University of Miami Law School specializing in tax law, said the impact of these potential tax changes is to shift the burden on to the corporate sector. This is a reversal of what has happened over the past few decades.
“If your priority is avoiding litigation, you have to follow the rules and not question them, but that could be expensive,” said Langbein.
“But the most important thing you would do in a company if you expected interest rates to rise is to accelerate income over the years with lower interest rates,” he said. “The Internal Revenue Service doesn’t like to question things, lose and make a decision with other taxpayers who take advantage of it.”
Biden introduced the American Jobs Plan, which is his infrastructure package, in which he called for various measures, such as: B. Billions of dollars to improve crumbling transportation and drinking water infrastructure, and allocate funds to care for disabled and elderly Americans.
Lawyers say companies come first to pay for these changes as Biden seeks to raise the corporate tax rate while removing tax breaks for some industries and cracking down on companies making offshore profits.
For example, Biden’s proposal would increase the domestic corporate tax rate from 21% to 28%, while for multinational corporations the global minimum tax rate would increase from 13% to 21%.
Focus on the rich
Now Josh Rosenberg, a partner of Kelley Kronenberg in his Brickell office, predicted that in his second plan in support of the investments required under the infrastructure plan, Biden will focus on high-income workers in order to consistently raise tax rates for the company under the infrastructure plan impose a $ 2 trillion infrastructure plan.