A Window Of Opportunity Is About To Close
Published Friday, April 23, 2021 at: 8:24 PM EDT
The window of opportunity to act before taxes are hiked is about to close.
At Tuesday’s State of the Union message, President Biden will likely talk about his plan for higher taxes, which he campaigned on. The details of the President’s plan to end the step-up basis on inheritances is perhaps the most significant change.
Other tax proposals Mr. Biden campaigned on include a sharp reduction in the favorable treatment on profits from investments, a new top tax rate of 39.6%, and expansion of the 12.4% Social Security tax if you earn more than $400,000 in adjusted gross income annually..
It’s possible the tax hikes about to be negotiated in Congress could be retroactive, which would make planning maneuvers fruitless. That’s unlikely, however, but the window of opportunity to act is about to be closed.
If your annual income is higher than $400,000 or your family has an estate worth more than $3.5 million, please let us know if you have questions.
Despite details of the coming tax hikes on wealth and investments emerging in press reports this past week, the Standard & Poor’s 500 stock index closed Friday at 4,180.17 – a gain of +1.09% from Thursday and down -0.12% from last week, ending a four-week winning streak. The index is up +60.54% from the March 23rd bear market low.
Nothing contained herein is to be considered a solicitation, research material, an investment recommendation, or advice of any kind, and it is subject to change without notice. Any investments or strategies referenced herein do not take into account the investment objectives, financial situation or particular needs of any specific person. Product suitability must be independently determined for each individual investor. Tax advice always depends on your particular personal situation and preferences. You should consult the appropriate financial professional regarding your specific circumstances. The material represents an assessment of financial, economic and tax law at a specific point in time and is not intended to be a forecast of future events or a guarantee of future results. Forward-looking statements are subject to certain risks and uncertainties. Actual results, performance, or achievements may differ materially from those expressed or implied. Information is based on data gathered from what we believe are reliable sources. It is not guaranteed as to accuracy, does not purport to be complete, and is not intended to be used as a primary basis for investment decisions. This article was written by a professional financial journalist for Advisor Products and is not intended as legal or investment advice.
- With Economic Recovery Intact, Stocks Are Near Record Again
- Are The Five Stocks Driving The Market's Great Returns Overvalued?
- Despite Gloomy Jobs Report, The Economic Outlook Remains Bright
- S&P 500 Rebounded Today After A Difficult Week And Month
- China Financial Contagion Fears Come And Go In A Few Days
- August Retail Sales Indicate The Recovery Is Intact
- This Week’s Financial Economic News
- Latest Financial Economic News For Investors
- After Fed Inflation Policy Speech, Stocks Closed At New Record High
- Stocks Closed 1% Off All-Time High; Strong New Economic Data
- Stocks Broke Record High Again This Week
- U.S. Jobs Picture Improved, Covid Variant Risk Declined, And Stocks Closed Week At Record
- This Week’s Economic And Investment News
- Positive Earnings, Housing, and LEI News; Stocks Closed Week At A Record
- Today Versus Post-War History Of U.S Economic Cycles
- Stocks Surged 1.1% Today, Closing At A Record High For The Third Straight Week
- Strong Jobs Report Confirms Recovery
- What's Ahead For The Second Half Of 2021?
- Despite Strong Economic News, Stocks Dropped This Past Week
- Stocks Closed At A Record High; What's Expected For The Rest of 2021?
- Jobs Situation Report Pushes Stocks A Fraction From All Time High
- Inflation Rate Doubled In Past Two Months
- Fed Signals It's Thinking About Starting To Talk About Tightening
- Expect Inflation To Make Investors Nervous Through 2021