Things to know about Proposed Tax Law Changes, by William D King
People who have made small investments in policy initiatives would benefit from the increased income tax rate. It has seven different tax brackets. Anyone paying taxes underneath the current system without claiming exclusions might benefit from a reduced upfront tax rate. It’s an optional plan, so people can transfer from one system to another when the prior year’s review completes. A taxpayer can only move from the old to the new system. If he or she does not have any revenue from a business or enterprise. It gives taxpayers more freedom to pick a different tax system based on their needs, William D King explains. Tax reforms that have been proposed, explained by William D King Income tax implications: Families earning more than $400,000 per year are likely to be affected. By direct changes in tax rates. Biden proposes raising the top marginal tax rate from 37 percent to 39.6 percent. Another significant change that might occur is the imposition of a Social Security levy on income over $400,000. At regular income rates if a taxpayer’s revenue increases by $1,000,000. When factoring for the 3.8 percent Net Investment Income Tax, it would nearly quadruple from 23.8 percent to 43.4 percent under the present form of the whole plan. Changes to savings accounts: Currently, taxpayers do not pay tax on donations to pre-tax retirement programs. A… Read More »Things to know about Proposed Tax Law Changes, by William D King