Some of the items list­ed below have been float­ed in alter­nate pro­pos­als, which are now ram­pant in Con­gress as the Democ­rats seek to get some­thing passed.

  1. Increase the cor­po­rate tax rate to 28% (pre­vi­ous­ly had been 35%, then reduced under the Trump admin­is­tra­tion to 21%), begin­ning in 2022
  2. Medicare sup­ple­men­tal tax of .9% (cur­rent­ly imposed on those with AGI in excess of $200,000 ($250,000 if mar­ried) will now be imposed on self-employ­ment income where the AGI is in excess of $400,000 – begin­ning in 2022
  3. Sen­ate Finance Chair Ron Wyden has pro­posed phas­ing out the Qual­i­fied Busi­ness Income deduc­tion under IRC 199A and the deductibil­i­ty lim­its which per­tain to spec­i­fied ser­vice trade or businesses
  4. Return to a top mar­gin­al income tax rate of 39.6%, which is what pre­ced­ed the Trump Admin­is­tra­tion change to 37%. The “Green Book” which car­ries some pro­pos­als, is also dis­cussing nar­row­ing the range on the 35% tax bracket.
  5. Long term cap­i­tal gains may be taxed at the top mar­gin­al ordi­nary rate for gains and div­i­dends that exceed $1 mil­lion of a taxpayer’s AGI
  6. Dis­turbing­ly, some pro­pos­als have the Long Term Cap­i­tal gains tax change retroac­tive to some time in 2021
  7. Lim­it on 1031 exchanges for real prop­er­ty to $500,000 of gain per tax­pay­er ($1M if mar­ried) per year
  8. Some are push­ing to repeal the Trump administration’s lim­it on the deductibil­i­ty on State and Local income tax­es, but it is not real­is­tic to assume this will go through
  9. Changes in estate tax too numer­ous to men­tion or sort through – but something

The oth­er issue is whether these will apply in 2021 or 2022