The American Families plan unveiled by President Biden seeks to improve infrastructure, create more jobs, and tackle climate change. Biden has also proposed a tax increase to fund the plan largely focused on high earners making more than $1 million per year, known as the Made in America tax plan. The plan, which increases the capital gains tax rate, could have big implications.
Key Points
Seeing through a tax lens
Changes in taxes are not certain. This should remind investors that assessing their wealth through a tax lens is increasingly important.
Specific policies mean specific actions
Some of the proposed changes would impact individuals differently depending on their income and investments.
Maintain good habits
Even without any tax changes, investors should consider tax-efficient strategies.
Proposed Changes
At a high level, the potential impact to your tax liability highly depends on your taxable income level. Below is an illustration, provided by Blackrock, of how these changes may affect you.
Bottom Line
Tax changes are neither certain nor permanent if they're passed into law. None of the items outlined in the proposal have been put into place yet and will not likely impact you in this tax year. We are here if you would like to talk in more detail about how the American Families Plan could impact you and your family financially.
