Biden tax proposals - MFJ

[Anonymous]

I haven’t been able to find any clarity on the income thresholds for MFJ.

I see he is targeting $400k for individuals but what about MFJ? In a perfect world it would be 800k MFJ but I highly doubt that occurs.

Has anyone been able to find any data on this?

[Anonymous]

All still in negotiation. If you are worried about getting hit, you should get a tax lawyer and start looking at Caribbean islands.

[Anonymous]

What is MFJ?

[Anonymous]

Anonymous wrote:What is MFJ?

I'm guessing Married Filing Jointly.

[Anonymous]

Anonymous wrote:I haven’t been able to find any clarity on the income thresholds for MFJ.

I see he is targeting $400k for individuals but what about MFJ? In a perfect world it would be 800k MFJ but I highly doubt that occurs.

Has anyone been able to find any data on this?

It’s 400k for households. I suggest you move to Monte Carlo

[Anonymous]

Anonymous wrote:

Anonymous wrote:I haven’t been able to find any clarity on the income thresholds for MFJ.

I see he is targeting $400k for individuals but what about MFJ? In a perfect world it would be 800k MFJ but I highly doubt that occurs.

Has anyone been able to find any data on this?

It’s 400k for households. I suggest you move to Monte Carlo

Not according to Bloomberg - this specifically says INDIVIDUALS, not Households:
https://www.bloomberg.com/news/articles/2021-03-15/biden-eyes-first-major-tax-hike-since-1993-in-next-economic-plan

The following are among proposals currently planned or under consideration, according to the people, who asked not to be named as the discussions are private:

Raising the corporate tax rate to 28% from 21%
Paring back tax preferences for so-called pass-through businesses, such as limited-liability companies or partnerships
Raising the income tax rate on individuals earning more than $400,000
Expanding the estate tax’s reach
A higher capital-gains tax rate for individuals earning at least $1 million annually. (Biden on the campaign trail proposed applying income-tax rates, which would be higher)

Now obviously nothing is given until we see actual language, and then how it's going to actually get done.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I haven’t been able to find any clarity on the income thresholds for MFJ.

I see he is targeting $400k for individuals but what about MFJ? In a perfect world it would be 800k MFJ but I highly doubt that occurs.

Has anyone been able to find any data on this?

It’s 400k for households. I suggest you move to Monte Carlo

Not according to Bloomberg - this specifically says INDIVIDUALS, not Households:
https://www.bloomberg.com/news/articles/2021-03-15/biden-eyes-first-major-tax-hike-since-1993-in-next-economic-plan

The following are among proposals currently planned or under consideration, according to the people, who asked not to be named as the discussions are private:

Raising the corporate tax rate to 28% from 21%
Paring back tax preferences for so-called pass-through businesses, such as limited-liability companies or partnerships
Raising the income tax rate on individuals earning more than $400,000
Expanding the estate tax’s reach
A higher capital-gains tax rate for individuals earning at least $1 million annually. (Biden on the campaign trail proposed applying income-tax rates, which would be higher)

Now obviously nothing is given until we see actual language, and then how it's going to actually get done.

I've only seen "individuals" nothing specific to married couples. While the snark comments are helpful I am geniunley curious as I am getting married this year..logically they should double it for MFJ but that's too easy..

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I haven’t been able to find any clarity on the income thresholds for MFJ.

I see he is targeting $400k for individuals but what about MFJ? In a perfect world it would be 800k MFJ but I highly doubt that occurs.

Has anyone been able to find any data on this?

It’s 400k for households. I suggest you move to Monte Carlo

Not according to Bloomberg - this specifically says INDIVIDUALS, not Households:
https://www.bloomberg.com/news/articles/2021-03-15/biden-eyes-first-major-tax-hike-since-1993-in-next-economic-plan

The following are among proposals currently planned or under consideration, according to the people, who asked not to be named as the discussions are private:

Raising the corporate tax rate to 28% from 21%
Paring back tax preferences for so-called pass-through businesses, such as limited-liability companies or partnerships
Raising the income tax rate on individuals earning more than $400,000
Expanding the estate tax’s reach
A higher capital-gains tax rate for individuals earning at least $1 million annually. (Biden on the campaign trail proposed applying income-tax rates, which would be higher)

Now obviously nothing is given until we see actual language, and then how it's going to actually get done.

I've only seen "individuals" nothing specific to married couples. While the snark comments are helpful I am geniunley curious as I am getting married this year..logically they should double it for MFJ but that's too easy..

The Trump tax cuts may have killed that, after that kept the same SALT deduction for singles and married couples.

[Anonymous]

There's no logic that says they should double it. That's where the "marriage penalty" has traditionally come in.

My guess is they'll hike income taxes on $400k+ for individuals and $550k+ for MFJs, but they'll also bump up NIIT or another broad-based tax that will hit everybody $250k+.

Is the 28% cap on 401k deductions included? If so, that's a tax hike on individuals $160k+ and MFJs $320k+.

[Anonymous]

In the campaign, it was $400,000 for individuals, more for couples: "Those changes could mean variable tax increases for individuals down to that $400,000 income threshold — more for married joint filers." (https://apnews.com/article/donald-trump-joe-biden-business-politics-ap-explains-2e319858f049ddf25d975476455b7305)

I understand the politics, but I think the increases should go down lower, to the top 10-20 percent of earners, not just the top 2-3 percent, though the increases should be highest on th richest.

And don't forget, that's only on INCOME above the threshold. So even if rates increased by 10 percentage points, someone making $400,100 would only pay $10 more a year.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I haven’t been able to find any clarity on the income thresholds for MFJ.

I see he is targeting $400k for individuals but what about MFJ? In a perfect world it would be 800k MFJ but I highly doubt that occurs.

Has anyone been able to find any data on this?

It’s 400k for households. I suggest you move to Monte Carlo

Not according to Bloomberg - this specifically says INDIVIDUALS, not Households:
https://www.bloomberg.com/news/articles/2021-03-15/biden-eyes-first-major-tax-hike-since-1993-in-next-economic-plan

The following are among proposals currently planned or under consideration, according to the people, who asked not to be named as the discussions are private:

Raising the corporate tax rate to 28% from 21%
Paring back tax preferences for so-called pass-through businesses, such as limited-liability companies or partnerships
Raising the income tax rate on individuals earning more than $400,000
Expanding the estate tax’s reach
A higher capital-gains tax rate for individuals earning at least $1 million annually. (Biden on the campaign trail proposed applying income-tax rates, which would be higher)

Now obviously nothing is given until we see actual language, and then how it's going to actually get done.

This is infuriating. My LLC will get taxed more, my county taxes will probably increase, and it will mean raising my prices. Things will get more expensive and people will lose jobs. How about they just tax Bezos, Buffet, Zuckerberg, Gates, and endowment’s at places like Harvard’s at really high rates?

[Anonymous]

Anonymous wrote:There's no logic that says they should double it. That's where the "marriage penalty" has traditionally come in.

My guess is they'll hike income taxes on $400k+ for individuals and $550k+ for MFJs, but they'll also bump up NIIT or another broad-based tax that will hit everybody $250k+.

Is the 28% cap on 401k deductions included? If so, that's a tax hike on individuals $160k+ and MFJs $320k+.

I mean LOGIC should double everything for married, but then again, the government usually throws logic aside. In what world should married couples be "penalized"??

[Anonymous]

You do realize that, even if you meet/exceed the income threshold for a new higher tax rate, you won’t have all your money taken away? Or even most? Or even have all your lovely vast income taxes at the new, higher rate?

[Anonymous]

Anonymous wrote:You do realize that, even if you meet/exceed the income threshold for a new higher tax rate, you won’t have all your money taken away? Or even most? Or even have all your lovely vast income taxes at the new, higher rate?

Hey, they need to find a way to pay for the new jet. God forbid they travel first class.

[Anonymous]

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.