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.
- Increase the corporate tax rate to 28% (previously had been 35%, then reduced under the Trump administration to 21%), beginning in 2022
- 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
- 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
- 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.
- 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
- Disturbingly, some proposals have the Long Term Capital gains tax change retroactive to some time in 2021
- Limit on 1031 exchanges for real property to $500,000 of gain per taxpayer ($1M if married) per year
- 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
- 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