The New England Accounting Advisor

President Biden recently unveiled his $2.29 trillion dollar plan to invest in transportation infrastructure and other capital projects, The American Jobs Plan (AJP). Although designed to stimulate the economy, the AJP may come with unfavorable tax provisions. Biden’s proposed eight-year AJP would be funded over the next 15 years through increases to corporate taxes and changes to U.S.-international business taxation. These permanent tax increases would offset the cost of the infrastructure and capital projects, and would begin to reduce federal deficits thereafter.

Topics: Taxes, COVID19, tax extension, Coronavirus, American Jobs Plan, AJP, Reconciliation, Budget Reconciliation

On March 17, the IRS announced that the tax filing and payment due date for individual taxpayers is postponed until May 17. Lawmakers and lobbying groups previously sought a longer postponement, but the additional one month provides welcome relief to many.

Topics: IRS, Taxes, COVID19, tax extension, Coronavirus, tax day

The new Biden administration has many priorities and some ambitious goals. Perhaps none is more immediate than an additional stimulus package to mitigate the deepening impact of a pandemic that has dragged on for nearly a year. After months of declines, initial jobless claims rose again in December to 782,000, which remains above the previous record of 665,000 set in March 2009 (excluding years prior to 1967 when unemployment was measured differently). State legislatures may also implement additional spending cuts in the coming months that could also lead to deleterious effects on unemployment.

With these challenges in mind, it is time to look at the Biden administration’s “American Rescue Plan” to aid in the economic recovery.

Topics: IRS, Taxes, Election, Tax Reform, COVID19, Coronavirus, Stimulus, #taxplan, Covid vaccine, loans and grants

Amid a chaotic week in Washington D.C., final election results came in that determined the composition of the Senate. Both Georgia Senate seats went to the Democratic candidates, which tipped the balance of power in the Senate to the Democratic party, with Vice President-Elect Kamala Harris presiding as the presumed tie-breaking vote in a chamber evenly split 50-50. This assumes that the Senate Democrats vote along party lines, which is far from certain.

Topics: election year, IRS, Taxes, Election, Tax Reform, senate, COVID19, Coronavirus, Republican Party, Biden, Harris, #taxplan, Filibuster, democratic party, Legislative Session

A close 2020 election may dampen prospects for some of the more ambitious tax changes proposed by former Vice President Joe Biden, who was declared the winner of the presidential race over the weekend by several news outlets. The situation is still uncertain, however, with President Trump filing lawsuits challenging the vote count in several states and refusing to concede the election at this time.

Topics: election year, IRS, Taxes, Election, Trump, COVID19, Coronavirus, Biden, Harris, #taxplan

As the 2020 presidential election approaches, many are looking ahead to how tax rates will be shaped by the next administration. President Trump and former Vice President Joe Biden hold strikingly different views on tax law, with planned changes to the current law expressed by both candidates.

Topics: IRS, Taxes, Donald Trump, Trump, COVID19, Coronavirus, Biden, Harris, #taxplan, capital gains

George H.W. Bush was the last person to be elected President after serving as a Vice President. Presidential candidate Joe Biden would be the first in over 30 years. Without many modern day examples, it is difficult to gauge the influence of a Vice President’s positions on actual U.S. policy, although Dick Cheney was highly influential on the policies of President George W. Bush. History aside, there are reasons to believe that the positions of Vice Presidential candidate Kamala Harris would be a strong influence. Her role as a former District Attorney and subsequently Attorney General of California is one significant reason. Another reason is that Biden, who would be 78 at the time he takes office if he wins, would be the oldest person to become President in U.S. history. With these factors in mind, it is time to examine, compare, and contrast Harris’s tax policies with Biden’s.

Topics: IRS, Taxes, COVID19, Coronavirus, Biden, Harris, #taxplan, Kamala Harris

President Trump took unprecedented action over the past weekend signing four executive orders related to the ongoing coronavirus pandemic. These orders include a payroll tax deferral, a temporary increase in unemployment benefits, a statement on reducing evictions, and a continuance of the pause for student loan payments and student loan interest. Several members of Congress have questioned the legal basis for certain of the executive orders, with the exception of the student loan moratorium. It is unclear whether or when Congress may bring a legal challenge to certain of the executive orders. In any case, various federal agencies must implement the executive orders before they can become effective.

Topics: IRS, payroll taxes, Taxes, Trump, COVID19, Coronavirus

On August 8, President Donald Trump signed four Executive Orders, one of which addresses a federal payroll tax holiday that he has sought to have included in any new coronavirus pandemic relief legislation. The President’s order is in response to the absence of movement by Congress on an additional stimulus package. The new order defers the withholding, deposit and payment of the employee’s share of federal OASDI (Social Security) payroll taxes (6.2%) from Sept. 1, 2020 through Dec. 31, 2020, on wages of employees whose annualized income is “generally” less than $100,000. While some have questioned President Trump’s legal authority to take this action, employers are placed in a precarious and potentially costly situation regardless of the legal outcome.

Topics: IRS, payroll taxes, Taxes, Trump, COVID19, Coronavirus

The 2020 presidential campaign between President Trump and former Vice President Joe Biden has mostly been sidelined as the country continues to grapple with the COVID-19 (coronavirus) pandemic. With November fast approaching, attention will soon shift toward the presidential race, where both candidates seek to distinguish their policies and initiatives. One place where the candidates stand far apart is on taxes.

Topics: IRS, Taxes, Donald Trump, Trump Tax Plan, Coronavirus, Biden, #taxplan, Joe Biden