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[quote=Anonymous][quote=Anonymous][quote=Anonymous]
The tax increases being proposed are quite a bit bigger than this.  Biden is saying that the rate will 39.6 for income over $400k.  Right now, $400k is 32% and that goes up to 35% at $418,850.  So we're talking a increase of 7.6% and 4.6% respectively.  He is also proposing SS tax on wages over $400k, which would be an additional 6.2%.  Plus he is proposing two caps on itemized deductions (a 28% cap and return of the Pease limitation).  Someone with $450k of income is probably looking at a good $15k in additional taxes if all this goes into effect (obviously depends on what your itemized deductions are).    [/quote]

That's only compared to the unusually low tax brackets during the Trump years.  The tax brackets from 2015 prior to the tax cuts were:
[img]https://i0.wp.com/www.savingtoinvest.com/wp-content/uploads/2014/09/Snip20141031_55.png?resize=680%2C221&ssl=1[/img]

So, essentially Biden is proposing to restore the tax brackets to what they were before TCJA.  Think of it like you got a Republican tax write-off for 4 years that cost the country a lot of money and services and we are no longer giving the rich folks that tax write-off.  [/quote]

First off, I was simply trying to correct the gross misstatement from the PP.  The tax increases under discussion are actually 10 times larger than PP suggested.  Second, you are still not being accurate.  There was never a 6.2% SS tax for over $400k.  This would be entirely new.  The TCJA took effect for tax year 2018.  In 2017, the year before, $400k was in the 33% bracket.[/quote]

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