The IRS and the Social Security Administration have released 2022 inflation-adjusted figures for more than 50 tax provisions. In addition to a 5.9% cost-of-living adjustment (COLA) for Social Security beneficiaries, details about adjustments to tax rate schedules, exemptions, and various thresholds for deductions and credits were announced. The tax year 2022 adjustments generally are used on tax returns filed in 2023.
Topics: estate planning, Taxes, Indivdual Taxes, Employee Retention Credits, Stimulus, Biden, Joe Biden, AMT, child tax credit, Kiddie Tax
The House Ways and Means Committee released discussion drafts that detail various tax increases or incentives for their version of President Biden’s “Build Back Better” infrastructure plan. These discussion drafts are organized into two “Committee Print” summaries, with one pertaining to green energy and social safety incentives, and the other pertaining to corporate and individual tax increases.
Topics: Taxes, Indivdual Taxes, Employee Retention Credits, Stimulus, Biden, Joe Biden, green energy, “Build Back Better” infrastructure plan
Despite several obstacles, President Biden’s stimulus plan was successfully shepherded through both chambers of Congress using the tricky budget reconciliation process and was officially signed into law on March 11, 2021. At $1.9 trillion, the American Rescue Plan (ARP) Act is slightly smaller than the $2.2 trillion Coronavirus Aid, Relief, and Economic Security (CARES) Act, but is larger than the $920 billion Consolidated Appropriations Act, 2021 (the Act) passed at the end of the last year. The ARP Act follows the general contours of the previous stimulus legislation in that it provides Recovery Rebate payments to individuals, expanded and extended unemployment benefits, and loans and grants for eligible business. However, the tax portions of the ARP Act bear some notable differences from the previous stimulus plans. These differences are discussed in depth below.
Topics: student loan forgiveness, Business Tax Provisions, paid sick time, Paid Family Leave, Employee Retention Credits, Stimulus, Biden, Joe Biden, American Rescue Plan (ARP) Act, ARP Act
On February 22, the White House announced changes to the Paycheck Protection Program that give exclusive access to certain small businesses.
Year-end legislation provided additional funding and an extension of the Small Business Administration’s Paycheck Protection Program (PPP) for the first quarter of 2021. Effective February 24, the Biden-Harris administration is instituting a 14-day holding period on new PPP applications (sometimes referred to as PPP2 loans) for businesses with 20 or more employees. The goal of the hold is to lessen the PPP competition for small businesses and sole proprietorships that may have had difficulty accessing the federal funds previously.
Topics: Election, COVID19, Coronavirus, employees, CARES Act, Paycheck Protection Program, PPP Loan, PPP Loan Forgiveness, Biden, PPP2
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
It is always important when considering year-end tax planning to include estate and gift tax considerations, but this year’s presidential election paired with the economic downturn makes estate planning especially important. It has been reported that Presidential candidate Joe Biden wants to roll back the estate tax exemption to as little as $3.5 million from the current amount of $11.58 million. He has stated that he also wants to remove many provisions of the tax reform law commonly known as the Tax Cuts and Jobs Act (TCJA), particularly those that benefit wealthy individuals. And lowering the exemption would be consistent with a campaign that is predicated on tax increases for the wealthy.
Topics: estate planning, estate tax, COVID19, Coronavirus, Coronavirus Aid, Relief, and Economic Security Act, Biden
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
