The Administration eventually dropped the proposed increase to the top rate when Senator Kirsten Sinema (D-AZ) refused to support any legislation that increased individual tax rates. (For our commentary, see Tax Alert 2021-1129.) This proposal is an identical provision from last year's Greenbook released in May 2021. These amounts would be indexed for inflation after 2023. The Administration's budget proposes raising the top marginal rate, for tax years beginning in 2023 and after, to 39.6% for: married individuals filing jointly with taxable income exceeding $450,000 heads of household with income exceeding $425,000 single individuals with income exceeding $400,000 and married individuals filing separately who have income exceeding $225,000. Increasing the highest individual income tax rate Examples of these proposed tax hikes include increases in the corporate and individual tax rates that were previously proposed by the Administration or congressional Democrats but later rejected as the BBBA was put together in the House. This means most tax-related spending and other BBBA provisions are omitted other major tax increase proposals are included, even though Congress has little appetite for passing some of them. The Administration's Budget proposal folds most of the House-passed Build Back Better Act (BBBA) into the baseline and assumes it has been enacted, a move likely intended to avoid upsetting any blossoming negotiations later this spring or summer on a post-BBBA reconciliation bill after the House measure stalled in the Senate. Taxing carried interest as ordinary income.Taxing IRC Section 1250 property as ordinary income.Modifying tax administration for trusts and estates.Modifying rules for certain grantor trusts.Expanding triggering events for capital gains recognition.Taxing some capital gain at ordinary income tax rates.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |