Home Forums Hunting & Shooting Hunter's Campfire Biden tax plan

Get ready to be bent over. These are guaranteed to pass.

President-elect Biden’s major tax proposals
1. Higher maximum rate
The pre-election Biden tax plan would raise the top individual federal income rate on ordinary income and net short-term capital gains back to 39.6%, the top rate that was in effect before the Tax Cuts and Jobs Act (TCJA) lowered it to 37% for 2018-2025. Biden also said he would generally raise taxes on folks with incomes above $400,000 without supplying specifics.

2. Itemized deductions
Biden has said he would limit the tax benefit of itemized deductions to 28% for upper-income individuals. In other words, each dollar of allowable itemized deductions could not lower your federal income tax bill by more than 28 cents, even if you are in the proposed 39.6% maximum tax bracket.

For upper-income individuals, Biden would reinstate the pre-TCJA rule that reduces total allowable itemized deductions above the applicable income threshold. Allowable deductions are reduced by 3 cents for every dollar of income above the threshold.

Biden would eliminate the TCJA’s $10,000 cap on itemized deductions for state and local taxes.

3. Higher maximum rate on long-term capital gains
Upper-income individuals would face higher capital gains taxes under the Biden plan. Under current law, the maximum effective federal income tax rate on net long-term capital gains and qualified dividends recognized by individual taxpayers is 23.8%, as explained in the main body of this column. Under the Biden plan, net long-term gains (and presumably dividends) collected by those with incomes above $1 million would be taxed at the same 39.6% maximum rate that is proposed for ordinary income and net short-term capital gains. With the 3.8% NIIT add-on, the maximum effective rate on net long-term gains would 43.4% (39.6% plus 3.8%). That would be almost double the current maximum effective rate of “only” 23.8%.

4. Higher Social Security taxes for upper-income individuals
Under current law, the 12.4% Social Security tax hits the first $137,700 of 2020 wages or net self-employment income. Employees pay 6.2% via withholding from paychecks, and employers pay the remaining 6.2%. Self-employed individuals pay the entire 12.4% out of their own pockets via the self-employment (SE) tax. For 2020, the 12.4% Social Security tax cuts out once 2020 wages or net SE income exceed the $137,700 ceiling. For 2021 and beyond, the Social Security tax ceiling will be adjusted annually to account for inflation. As things currently stand, the 2021 ceiling will rise to $142,800.

The Biden tax plan would restart the 12.4% Social Security tax on wages and net SE income above $400,000. This is the so-called donut hole approach to increasing the Social Security tax. Over the years, the donut hole would gradually close as the lower edge of the hole is adjusted upward for inflation while the $400,000 upper edge of the hole remains static.

5. Elimination of basis step-up for inherited assets
Under current law, the federal income tax basis of an inherited capital-gain asset is stepped up fair market value as of the decedent’s date of death. So, if heirs sell inherited capital-gain assets, they only owe federal capital gains tax on the post-death appreciation, if any. This provision can be a huge tax-saver for greatly-appreciated inherited assets — such as personal residences that were acquired many years ago for next to nothing and are now worth millions. The Biden plan would eliminate this tax-saving provision.

6. Elimination of real-estate tax breaks
The Biden tax plan would: (1) eliminate the $25,000 exemption from the passive loss rules for rental real estate losses incurred by middle-income individuals, (2) eliminate Section 1031 like-kind exchanges that allow deferral of capital gains taxes on swaps of appreciated real property, (3) eliminate rules that allow faster depreciation write-offs for certain real property, and (4) eliminate qualified business income (QBI) deductions for profitable rental real estate activities.

7. Increased child- and dependent-care credits
Under current law, parents can collect a credit of up to $2,000 for each under-age-13 qualifying child. This is a refundable credit, which means you don’t have to have any federal income tax liability to collect the credit. In other words, the child credit is “free money.”

Under current law, another credit of up to $2,100 is allowed to cover expenses to care for a qualifying dependent, including an eligible child, or up to $4,200 for expenses to care for two or more qualifying dependents. In most cases, however, an income limitation reduces the maximum allowable credit to $1,200 or $2,400 for two or more qualifying dependents.

The Biden tax plan would increase the maximum refundable child credit to $4,000 for one qualifying child or $8,000 for two or more qualifying children. Families making between $125,000 and $400,000 would receive reduced credits. Apparently, the same rules would apply to an enhanced credit for expenses to care for qualifying dependents.

Biden would also establish a new credit of up to $5,000 for informal caregivers.

8. New credits for homebuyers and renters
The Biden plan would create a new refundable tax credit of up to $15,000 for eligible first-time homebuyers. The credit could be collected when a home is purchased, rather than later at tax-return filing time. Biden would also establish a new refundable tax credit for low-income renters. The credit would be intended to hold rent and utility payments to 30% of monthly income.

9. ‘Green energy’ tax changes

Biden would reinstate or expand tax incentives intended to reduce carbon emissions — such as deductions for emission-reducing investments in residential and commercial buildings and restored credits for buying electric vehicles produced by manufacturers whose credits have been phased-out under current law. Biden would also eliminate federal income tax deductions for oil and gas drilling costs and depletion.

10. And finally…

One of the biggest changes in the 2017 Tax Cuts and Jobs Act (TCJA) was the installation of a flat 21% corporate federal income tax rate for 2018 and beyond. Before the TCJA, the maximum effective rate for profitable corporations was 35%. The Biden plan would increase the corporate tax rate to 28%. This change would raise an estimated $1.1 trillion or so over 10 years.

The Biden plan would impose a new 15% minimum tax on corporations with at least $100 million in annual income that pay little or no federal income tax under the “regular rules.” An affected corporation would pay the greater of: (1) the “regular” federal income tax bill or (2) 15% of reported book net income. This new tax would raise an estimated $160 billion to $320 billion over 10 years

Its only for the wealthy........


This will be "trickle up" economics...

a crap plan for sure.

Beijing Biden won`t do chit he is to stupid ,he is just the puppet . get ready for $4.00 gas , higher taxes for all middle income tax payers will get screwed again

So the more you earn, the higher percentage you pay. No incentive to produce beyond a certain level because you end up with less for your efforts. This is precisely why tax attorneys and accountants are employed by many.

Some would rather pay more to a skilled accountant than the cost of the tax itself.

Put this on another thread.

Might as well put it on this one too.
See below:


Dont matter if ya think not paying attention to any of it will not affect you and life just goes on..
Not to mention being labeled a criminal when they start tailoring the constitution for their agenda and have enough states to ratify schitt they want to do.
Think about that one.....


Just think of all the new little federal taxes on everything that are gonna come down the pike now that the Liberal Socialist Democrat are gonna have the rubber stamp in all 3 branches.
And can basically do justabout anything they want...
Think about that..........

Lets not even think about fed income tax going back to previous brackets no matter what slow joe said about those earning less than 400 k wont have their taxes raised.
Or lets not even think about corporate tax rates going back up and driving companies away again.

Let me list just a few off the wall ones that people will probably not even notice or just bend over and accept....
1. Fed food tax lets say 1 or 2% food stampers exempt of course.....
2. Fed ammo tax 20 to 30% (this one will be noticed)
3. Individual fed tire tax
4. Mileage tax maybe tied in with # 3
5.fed sales tax 1 to 2% on durable goods
6. Fed sales tax on building materials
7. Fed sales tax on fuel gonna go up for sure
8. Fed sales tax on automotive parts
9. More fed tax on internet and phone schit
10. Fed tax on media sales products (phones, tv,s pads ect ect)
11.possible fed sales on just about everything not covered of say .5%
12. Firearms sales tax of say at least 10% ... at least
Lets not forget mandatory data base entry and private sales between state residents being taken away....
13. Booze and tobacco taxes increasing
14. Fed utilities tax
15. Increase of fed tax on interstate and international travel means
16. Hunting and fishing license fed tax
17. Fed online sales tax, hey the states got their greedy dik beaters on dat so why not unca suga too.
18.Fed taxidermy tax
19. Fed tax for interstate travel, set up on interstate borders like electronic travel pass reader schit....
They will have howard johnsons again to eat at!!! So you wont be inconvienced....
20. White person tax. 1 time fee at birth.


Ect ect ect ect .
Probably 100,s more I cant even think of.


Nothing they can think of will not be taxed.....
Anything they can tax they will......
Think about that...

Then lets throw state schit in with it all once they start seeing big bro fed doing schitt.....

And all this BS should only apply to Liberal Democraps and Biden supporters.

Short of taking all that everyone earns, they can't tax enough to even begin to cover their new & added spending & give-a-ways.

And it will be hard to undo what they will do in the 1st 2 years, as with Obama care, most of it will never, ever be undone either.

MM

The problem with taxing high earners like CEO's more...they just reduce staff wages and raises and give themselves higher bonuses to offset it.

Wait until they tackle the energy industry. Oil, gas, coal ....

Well, I'm gonna go Gault. /sarc

For sure get ready for californiacation of your states.

Wait till registration for that 2015 f150 is 600 a yr.
Electricity at 34c a KWh.
Fishing/hunting lic 150$ with 80$ Nature pass.

Then fed will start some bull shut infrastructure plan like high speed rail.
20yrs and 100billion later (80 more to finish estimated lol) and zero to show for it besides additional gas tax

They already did. Last line of energy taxes. Eliminate all tax deductions for drilling and shut down of wells




Actually agree with Renegade that ammo and guns will be taxed but more like 75-100% double the cost. As far as hunting and fishing my gut feeling is that they are going to ban all recreational shooting i.e non hunting from federal lands. Any hunting will be done with non lead bullets. Federal land hunting access will be strictly enforced and limited. Fishing will go to non toxic sinkers, hooks and line. Lastly believe that you will have to buy an annual access permit for federal lands. Gotta keep those environmental activists happy and open up more land for reintroduction and preservation of wildlife for hikers and campers.

The definition of "Wealthy" will soon work it's way down to anyone with a job and/or a 401(k).

I had the great opportunity of growing up in Oregon 😁 anyhow the governor at the time a John Kitzahber was throwing around the idea of people paying a mileage tax based on how many miles you drove your vehicle every year. Well it never went anywhere. But I bet you a nag beef jerky they are floating this idea around. With vehicle technology not hard for them to get that data.

The cost of these 'wealth taxes' will be passed along to the consumers of goods and services.....as always.

Naw, there is already a plan to optimize the 401K in favor of low earners. They want to get rid of the pre tax benefit and force retirement funds into a after tax Roth plan. Accomplishes 2 goals, make 401K money taxable on rollover. 2 gives a bigger tax break to low income savers while reducing the tax benefits of higher income savers.

Simplified Liberal Tax Return -- for any country.


line #1 --- How much money did you make? ____________________

line #2 --- Send it ALL in, ____________________

You can have what is left. 0000000000000.