Speaking Out for Louisiana Citizens

Speaking Out for Louisiana Citizens

BIDEN - TAX HIKE

It is important to look at the real issues and forget the individuals in the upcoming election. Some of the “never Trumpers” will make you overlook the real issues. It is plain to realize that taxes under Biden are going to be very severe. We have enjoyed under Donald Trump the lowest tax rates that we have ever seen in decades. President Trump’s 2017 Tax Cuts and Job Acts lowered rates, widened brackets, and simplified preparation. On December 31st, 2025, the tax cuts will expire and former President Obama’s Relief Act of 2012 becomes the law of the land once more.

Just look at this. A married couple filing jointly shows $78,000 of ordinary income, their current marginal rate is 12%. When the Trump tax cuts expire, their marginal rate will more than double, to 25%. If you receive $30,000 from Social Security and have $36,000 of other income, you will be taxed at a marginal rate of 46%, even while supposedly being in the 25% tax bracket (because in a nutty way Social Security is taxed). In some cases, your tax rate can go as high as 56%. More people will experience rising tax rates throughout retirement – first gradually following the required minimum distributions from their retirement accounts, and then suddenly when the first spouse dies and the survivor has to file as a single taxpayer.

It gets much more complicated, but one thing is for sure, the Biden tax rate will be severe. He is playing to social programs and wants to put more taxes on individuals and businesses than ever before. What about a triple whammy: cutting the estate tax exemption in half, eliminating the capital gains reset to fair market value, and then doubling the capital gains tax rate. All of this is a small step for the government, a big strong political move and a giant loss for the American family. (Source: Wall Street Journal)

 

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