Biden tax proposals - MFJ

[Anonymous]

Anonymous wrote:Ehh, if he raises taxes for over $400k, I’ll just put the excess in my deferred comp plan and take it out at lower rates during early retirement.

Me too. And liquidate everything from the market before the cap rate increases take effect and ride the inflation trade on risk off cash.

[Anonymous]

Go get ‘em Joe!

[Anonymous]

I’ll just buy a place and open an offshore LLC in the Virgin islands. Suck it Dementia-Joe

[Anonymous]

Anonymous wrote:Ehh, if he raises taxes for over $400k, I’ll just put the excess in my deferred comp plan and take it out at lower rates during early retirement.

He's proposed capping deductions at 28% across the board, including deferred comp plans/db plans, and even charitable deductions. It's an incredibly progressive proposal. My guess is it will pass but charitable deductions may not have a cap.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Ehh, if he raises taxes for over $400k, I’ll just put the excess in my deferred comp plan and take it out at lower rates during early retirement.

He's proposed capping deductions at 28% across the board, including deferred comp plans/db plans, and even charitable deductions. It's an incredibly progressive proposal. My guess is it will pass but charitable deductions may not have a cap.

Link? I’ve seen the proposal to bring back the pease limitation, but nonqualified deferred comp plans were never subject to that (and also are not a above or below the line deduction).

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Ehh, if he raises taxes for over $400k, I’ll just put the excess in my deferred comp plan and take it out at lower rates during early retirement.

He's proposed capping deductions at 28% across the board, including deferred comp plans/db plans, and even charitable deductions. It's an incredibly progressive proposal. My guess is it will pass but charitable deductions may not have a cap.

Link? I’ve seen the proposal to bring back the pease limitation, but nonqualified deferred comp plans were never subject to that (and also are not a above or below the line deduction).

I havent seen new talk on the 28%; but there was lots of chatter on that in the obama era:
https://www.wsj.com/articles/SB10001424127887323916304578402952175617808

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Ehh, if he raises taxes for over $400k, I’ll just put the excess in my deferred comp plan and take it out at lower rates during early retirement.

He's proposed capping deductions at 28% across the board, including deferred comp plans/db plans, and even charitable deductions. It's an incredibly progressive proposal. My guess is it will pass but charitable deductions may not have a cap.

Link? I’ve seen the proposal to bring back the pease limitation, but nonqualified deferred comp plans were never subject to that (and also are not a above or below the line deduction).

If they capped defined contributions plans (i.e. 401ks) at 28% but allowed defined benefit plans (i.e. traditional pensions) to continue on as is, it would create an enormous imbalance with potentially severe unintended consequences. Not to mention it's regressive and would look horrible from a messaging standpoint. So while anything is possible, I wouldn't hold my breath.

[Anonymous]

well here is your answer:

https://www.cnbc.com/2021/03/18/biden-tax-plan-what-people-making-under-and-over-400000-can-expect.html

"She clarified on Wednesday that the $400,000 threshold applies to families, not individuals. Consequently, individuals who make $200,000 could be affected if they are married to someone who earns that same amount, for example."

This is really annoying. Why in the world does the government go after working class families. I know I will get crap for saying this but come on 400k in DC is not rich, NOR are they the problem. Two high level feds and some investment income gets you to 400k..are they really wealthy?

Politicians need to get over this weird infatuation with 200k and rich. yeah maybe 20 years ago..

Why don't they focus on the truly wealthy (1M indiv, 2M MFJ for example) and stop going after mid level professionals..

rant over

[Anonymous]

I guess as always middle class has to get to working harder and paying more in taxes to help out . True Rich people will find the way not to pay taxes , afterall they have time and money , to protect their wealth. Middle class too busy working day and night and try to catch their own tail.

[Anonymous]

Anonymous wrote:well here is your answer:

https://www.cnbc.com/2021/03/18/biden-tax-plan-what-people-making-under-and-over-400000-can-expect.html

"She clarified on Wednesday that the $400,000 threshold applies to families, not individuals. Consequently, individuals who make $200,000 could be affected if they are married to someone who earns that same amount, for example."

This is really annoying. Why in the world does the government go after working class families. I know I will get crap for saying this but come on 400k in DC is not rich, NOR are they the problem. Two high level feds and some investment income gets you to 400k..are they really wealthy?

Politicians need to get over this weird infatuation with 200k and rich. yeah maybe 20 years ago..

Why don't they focus on the truly wealthy (1M indiv, 2M MFJ for example) and stop going after mid level professionals..

rant over

Because there very very few of those people out there, so there's not as much revenue to be had, and their income tends to come from sources that can be manipulated for tax purposes (i.e. closely held business income, rental and real estate income, various forms of executive comp) so they can make it look as if they actually have lower incomes if they need to.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Ehh, if he raises taxes for over $400k, I’ll just put the excess in my deferred comp plan and take it out at lower rates during early retirement.

He's proposed capping deductions at 28% across the board, including deferred comp plans/db plans, and even charitable deductions. It's an incredibly progressive proposal. My guess is it will pass but charitable deductions may not have a cap.

Link? I’ve seen the proposal to bring back the pease limitation, but nonqualified deferred comp plans were never subject to that (and also are not a above or below the line deduction).

If they capped defined contributions plans (i.e. 401ks) at 28% but allowed defined benefit plans (i.e. traditional pensions) to continue on as is, it would create an enormous imbalance with potentially severe unintended consequences. Not to mention it's regressive and would look horrible from a messaging standpoint. So while anything is possible, I wouldn't hold my breath.

A nonqualified deferred comp plan is not defined benefit plan/ traditional pension. Even if it were, there are already huge differences between defined benefit plans and 401ks. The rules aren't even roughly comparable.

[Anonymous]

Anonymous wrote:

Anonymous wrote:well here is your answer:

https://www.cnbc.com/2021/03/18/biden-tax-plan-what-people-making-under-and-over-400000-can-expect.html

"She clarified on Wednesday that the $400,000 threshold applies to families, not individuals. Consequently, individuals who make $200,000 could be affected if they are married to someone who earns that same amount, for example."

This is really annoying. Why in the world does the government go after working class families. I know I will get crap for saying this but come on 400k in DC is not rich, NOR are they the problem. Two high level feds and some investment income gets you to 400k..are they really wealthy?

Politicians need to get over this weird infatuation with 200k and rich. yeah maybe 20 years ago..

Why don't they focus on the truly wealthy (1M indiv, 2M MFJ for example) and stop going after mid level professionals..

rant over

Because there very very few of those people out there, so there's not as much revenue to be had, and their income tends to come from sources that can be manipulated for tax purposes (i.e. closely held business income, rental and real estate income, various forms of executive comp) so they can make it look as if they actually have lower incomes if they need to.

In a perfect world they could differentiate between high cost of living areas and the boonies. 400k in DC is vastly different than 400k in Nebraska. The mortgage industry makes it work!

For ex: in areas like DC, NYC, LA, Seattle, SF they could increase the income thresholds to 600k or whatever metric they do. I'm sure people will think this is a logistical nightmare but it's really not that difficult. Create HCOL zip codes and connect them to the taxpayer and their withholding amounts.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:well here is your answer:

https://www.cnbc.com/2021/03/18/biden-tax-plan-what-people-making-under-and-over-400000-can-expect.html

"She clarified on Wednesday that the $400,000 threshold applies to families, not individuals. Consequently, individuals who make $200,000 could be affected if they are married to someone who earns that same amount, for example."

This is really annoying. Why in the world does the government go after working class families. I know I will get crap for saying this but come on 400k in DC is not rich, NOR are they the problem. Two high level feds and some investment income gets you to 400k..are they really wealthy?

Politicians need to get over this weird infatuation with 200k and rich. yeah maybe 20 years ago..

Why don't they focus on the truly wealthy (1M indiv, 2M MFJ for example) and stop going after mid level professionals..

rant over

Because there very very few of those people out there, so there's not as much revenue to be had, and their income tends to come from sources that can be manipulated for tax purposes (i.e. closely held business income, rental and real estate income, various forms of executive comp) so they can make it look as if they actually have lower incomes if they need to.

In a perfect world they could differentiate between high cost of living areas and the boonies. 400k in DC is vastly different than 400k in Nebraska. The mortgage industry makes it work!

For ex: in areas like DC, NYC, LA, Seattle, SF they could increase the income thresholds to 600k or whatever metric they do. I'm sure people will think this is a logistical nightmare but it's really not that difficult. Create HCOL zip codes and connect them to the taxpayer and their withholding amounts.

The data is certainly out there but there's a zero chance of this ever happening.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:well here is your answer:

https://www.cnbc.com/2021/03/18/biden-tax-plan-what-people-making-under-and-over-400000-can-expect.html

"She clarified on Wednesday that the $400,000 threshold applies to families, not individuals. Consequently, individuals who make $200,000 could be affected if they are married to someone who earns that same amount, for example."

This is really annoying. Why in the world does the government go after working class families. I know I will get crap for saying this but come on 400k in DC is not rich, NOR are they the problem. Two high level feds and some investment income gets you to 400k..are they really wealthy?

Politicians need to get over this weird infatuation with 200k and rich. yeah maybe 20 years ago..

Why don't they focus on the truly wealthy (1M indiv, 2M MFJ for example) and stop going after mid level professionals..

rant over

Because there very very few of those people out there, so there's not as much revenue to be had, and their income tends to come from sources that can be manipulated for tax purposes (i.e. closely held business income, rental and real estate income, various forms of executive comp) so they can make it look as if they actually have lower incomes if they need to.

In a perfect world they could differentiate between high cost of living areas and the boonies. 400k in DC is vastly different than 400k in Nebraska. The mortgage industry makes it work!

For ex: in areas like DC, NYC, LA, Seattle, SF they could increase the income thresholds to 600k or whatever metric they do. I'm sure people will think this is a logistical nightmare but it's really not that difficult. Create HCOL zip codes and connect them to the taxpayer and their withholding amounts.

The data is certainly out there but there's a zero chance of this ever happening.

One could dream that our government utilizes technology to become more efficient and fair!

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:well here is your answer:

https://www.cnbc.com/2021/03/18/biden-tax-plan-what-people-making-under-and-over-400000-can-expect.html

"She clarified on Wednesday that the $400,000 threshold applies to families, not individuals. Consequently, individuals who make $200,000 could be affected if they are married to someone who earns that same amount, for example."

This is really annoying. Why in the world does the government go after working class families. I know I will get crap for saying this but come on 400k in DC is not rich, NOR are they the problem. Two high level feds and some investment income gets you to 400k..are they really wealthy?

Politicians need to get over this weird infatuation with 200k and rich. yeah maybe 20 years ago..

Why don't they focus on the truly wealthy (1M indiv, 2M MFJ for example) and stop going after mid level professionals..

rant over

Because there very very few of those people out there, so there's not as much revenue to be had, and their income tends to come from sources that can be manipulated for tax purposes (i.e. closely held business income, rental and real estate income, various forms of executive comp) so they can make it look as if they actually have lower incomes if they need to.

In a perfect world they could differentiate between high cost of living areas and the boonies. 400k in DC is vastly different than 400k in Nebraska. The mortgage industry makes it work!

For ex: in areas like DC, NYC, LA, Seattle, SF they could increase the income thresholds to 600k or whatever metric they do. I'm sure people will think this is a logistical nightmare but it's really not that difficult. Create HCOL zip codes and connect them to the taxpayer and their withholding amounts.

The data is certainly out there but there's a zero chance of this ever happening.

One could dream that our government utilizes technology to become more efficient and fair!

That's crazy talk.