Biden on Taxes

Here are quick summaries of 10 tax plans that will sail through a Democratic-controlled Senate according to ‘Tax Guy’:

1. Higher maximum rate 

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.

2. Itemized deductions

limit the tax benefit of itemized deductions to 28% for upper-income individuals.

3. Higher maximum rate on long-term capital gains

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.

4. Higher Social Security taxes for upper-income individuals 

restart the 12.4% Social Security tax on wages and net SE income above $400,000.

5. Elimination of basis step-up for inherited assets

currently heirs who sell inherited capital-gain assets only owe federal capital gains tax on the post-death appreciation, if any. The Biden plan would eliminate this tax-saving provision.

6. Elimination of real-estate tax breaks

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

7. Increased child- and dependent-care credits

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

8. New credits for homebuyers and renters

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

reinstate or expand tax incentives intended to reduce carbon emissions.

10. And finally…

increase the corporate tax rate to 28% and 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.

51 responses to this post.

  1. Posted by NJ2AZ on January 7, 2021 at 11:27 am

    “New credits for homebuyers and renters”

    when will these idiots learn that subsiding demand for things that are priced highly because of supply side constraints is not a winning formula?

    I guess as someone who already owns a home, i appreciate the bump in equity.

    Reply

  2. Posted by MJ on January 7, 2021 at 12:44 pm

    I guess in our service economy, home buying, real estate, mortgage companies and all of the other “service” industries, retail, construction, etc that are supported by home buying make it worth it? Home ownership makes neighborhoods more stable? IDK

    Reply

  3. Posted by MJ on January 7, 2021 at 1:17 pm

    NJ2AZ,

    Good points and the way I look at it, we all have to live somewhere preferably close to work and family. I don’t have any idea of how much I think real estate will continue to appreciate. I think we are most likely in one of the bubbles now and real estate can vary depending on the area of the country.

    Wasn’t George W’s mantra “everybody in a house” and we saw how that turned out.

    CRASH

    Hopefully, it will be wine and roses with our new President 🙂

    Reply

    • Posted by NJ2AZ on January 7, 2021 at 1:21 pm

      if they want “Everyone in a house”, then they need to mandate tiny houses. (i’m not endorsing or crushing this position, just saying what it would require)

      Worth adding people always say the middle class is declining. what was the average middle class home 50 years ago? 900 sq ft or something?

      Reply

    • Posted by Tough Love on January 7, 2021 at 1:28 pm

      Once interest rates start rising ……. 2-3% …….. homes sales will all but stop until prices come down to offset a large share of the associated increase in monthly mortgage payments.

      Reply

      • Posted by NJ2AZ on January 7, 2021 at 1:48 pm

        i have never employed “my house will always be worth more than i paid for it” as part of my financial strategy. probably going to be a painful lesson for others at some point.

        Reply

  4. Posted by MJ on January 7, 2021 at 2:59 pm

    NJ, there are actually several initiatives in many cities to build very tiny houses to house homeless people. This doesn’t directly apply to home ownership but definitely a concept. How much space does one need? I guess it is all relative to the individual and/or family.

    Maybe we will all be forced into tiny homes so that way we cut down on energy usage……it could happen 🙂

    Reply

    • With no central air and no microwaves DVR and Apple TV. How did we ever cope? Full disclosure I grew up AC and mikes. Lol.

      Reply

    • Actually since about 2007 or so, the move was to townhomes and condos and away from single family homes. Gas prices, cars and paying for unused space wasn’t something millennials would be into. With the virus, cars have made a comeback. Not that we are traveling as many miles because of work from home etc. new homes have gotten smaller as have offices.

      Reply

      • Posted by NJ2AZ on January 7, 2021 at 3:58 pm

        I have a family of four in a 1900sq ft house. We upgraded from 1300 sq ft when baby number two was on the way. I see people with 1 or 0 kids and these 2500+ sq ft houses and think “why?” to each their own i guess.

        i like a smaller house, keeps me from accumulating too much crap 🙂

        Reply

  5. Posted by geo8rge on January 7, 2021 at 5:42 pm

    Let’s say all of the above tax hikes pass. Does that mean any or all of the pension bailouts will occur? What’s the plan for the new taxation? Pay back debt and nothing else?

    Reply

    • Posted by NJ2AZ on January 7, 2021 at 11:23 pm

      If all those tax hikes passed, how much would it blow up the unfunded liability when asset values crater?

      Reply

  6. Posted by MJF on January 7, 2021 at 6:07 pm

    I am very mobile, I have left the the country. Bye all I will miss you.

    Reply

    • As am I. I am headed to the moon right now. For a quick drink then a year later I’ll be on Mars.

      Reply

      • Posted by Tough Love on January 7, 2021 at 10:20 pm

        Maybe you can hitch a ride the next time Elon Musk’s Roadster (with Starman at the wheel) flys by the Earth.

        Reply

      • Posted by MJF on January 7, 2021 at 11:55 pm

        You are kidding, I am not.

        Reply

        • Posted by geo8rge on January 8, 2021 at 7:04 am

          Good luck, just remember you still have to pay taxes to the IRS.

          Reply

          • Posted by MJF on January 8, 2021 at 4:18 pm

            Yes on the hook for life, I know. And the Poconos are great, I roomed with a guy from Scranton decades ago, nice peeps.

            Reply

        • Wow. And I thought a lake house in the Poconos was a big move
          Canada, Europe? Last minute decision or planned for a while? We haven’t heard you mention the impending move….just curious. No question the US standing in the works isn’t what it once was. And if we can’t learn to coexist left and right. Agree to disagree if you will, like me and TL, then we will never be what we once were.
          Social media is partly to blame. How someone like Kim Kardashian could have millions of followers who actually give a shit about how she feels is beyond me.

          Reply

          • Posted by MJF on January 8, 2021 at 10:21 am

            Long planned, heartbreaking really. You ditch everything and everyone. But it’s a brighter future for me. Happy trails y’all!!

            Reply

  7. Biden and Harris claiming that BLM protesters were treated differently. How many of the rioters much less protesters this summer were killed by police? They need to STOP!!! Condemn the assholes from yesterday. But PLEASE do not turn off republicans who finally are coming around and throwing off the Trump yoke by telling the that everything was peaches and cream in terms of riots and protests this summer. It wasn’t. And these two said nothing the ENTIRE summer. So just stop with the bullshit. Haven’t we had enough with Trump’s lies? Let’s not get rid of one liar only to bring in another. She set up a Bail fund for folks who burned down have of Minneapolis. Including the police station. I see no difference in behaivior on either side. Both suck!!

    Reply

    • Posted by Tough Love on January 7, 2021 at 11:32 pm

      Oh please, that was a very VOLUNTARILY worn yoke ……. pissing in their pants if they disobeyed the emperor and didn’t kiss his ring.

      Substantial/lasting punishment is in order.

      Reply

      • Posted by Rex the Wonder Dog!🐶🐶🐶🐾🐾🐾 on January 8, 2021 at 1:26 am

        Oh please, that was a very VOLUNTARILY worn yoke ……. pissing in their pants if they disobeyed the emperor and didn’t kiss his ring.
        ==
        🤦‍♂️🤦‍♂️🤦‍♂️

        Reply

      • I agree on the punishment. But don’t for a second tell me that Bernie didn’t have his Bro’s. I don’t forget anything that has happened this summer. And would’ve like to see a more forceful condemnation of the violence by the left. We didn’t see it. We saw the St. Louis DA, prosecute the folks defending their home while dozens broke down gates. We saw Portland DA five a free pass night after night and not charge folks. We saw the Vice President Elect set up a bail fund. We saw the Seattle mayor allow CHAS. We saw many elected officials and police officers homes targeted by mobs. We saw NO Seattle council members ask Chief Best how her officers were after dozens went to the hospital. Fuck all that shit TL. Just as bad as the rioters at the capital. No room for it at all.

        Reply

        • Posted by dentss dunnigan on January 8, 2021 at 10:14 am

          Lets condemn Berie and his band of traitors …On June 14, 2017, during a practice session for the annual Congressional Baseball Game for Charity in Alexandria, Virginia, James Hodgkinson shot U.S. House Majority Whip Steve Scalise, U.S. Capitol Police officer Crystal Griner, congressional aide Zack Barth, and lobbyist Matt Mika.

          Reply

        • Posted by Tough Love on January 8, 2021 at 3:31 pm

          The takeover in Portland was crazy, and Law enforcement never should have put up with it (especially for so long …. as it encourages other to do the same). Any stores or property owners who sustained damage or lost revenue should sue the City.

          Reply

  8. Posted by MJ on January 8, 2021 at 7:19 am

    I was wondering how long it would take for the capitol incident to be compared to the riots in the summer and insert the race narrative
    .
    Biden didn’t waste anytime with that but let’s unify the country everybody.

    Did anyone talk about the white woman veteran who was shot and killed by the police?
    Maybe the NFL players will wear her name on their helmets during the Super Bowl instead of criminals who resisted police.

    But we need to unify the country….okaaay

    Reply

    • Don’t martyr the woman shot and killed. She had it coming. As did MOST but certainly not all of the folks that the NFL wears on their helmet (I abhor that more than you know my friend). I find it all disgusting. I’m a civil non violent person and expect ALL to be like me or be punished severely. These cities are shitholes and dangerous because of the FAILURE of elected officials to back Law enforcement and allow the mutts to be thrown in jail. All I’m saying MJ is that that was an awful display, incited by Trump. He should be removed. As far as that woman goes, too damn bad. She knew exactly what she was getting into. On the other side of that door were our elected Members of Congress.
      Just as I am supposed to represent an ideal of Order over Chaos and hence the idea that an attack on me is an attack on society at large, so is it with the Congress. They represent the ideals of this country. They govern with our consent as I enforce laws with YOUR consent collectively. You wouldn’t have a problem if it was Anitifa about to breach the chamber and the police killed a few who made it in. As neither would I. But It’s NOT the local CVS bro. She had it coming. More did in my mind. As did many on the left this summer.
      We need to come together. We need a boring Biden to just run the country and smile. Not pander to “oppressed groups”. That is partly why we got where we did. We need a Bill Clinton or George Bush (either) for a few years. Where you could argue politics with your neigbor(I never do. Never) but not want to kick the living shit out him or worse because he disagrees with you.

      Reply

      • And MJ. They fact that she was white, a woman, or a veteran had nothing to do with her death. Her actions did. Just like Almost always the fact that someone is black, a man, etc has nothing to do with their death at the hands of LEO. Their actions do. And this woman made a terrible awful decision to breach an occupied House Chamber guarded by armed police. Bad idea and she paid the ultimate price. For what? There was no WAY trumo was ever going to stop the transfer of power. Now she is dead. She literally died because she was so fucking stupid. Storming and breaching the Capitol while it is occupied by members of Congress. What did she think might happen? She was so fucking stupid MJ. She believed TRUMP and not anyone else regards to this election. And it wasn’t about the stealing of the election. It was about keeping him in power. She paid with her life. I couldn’t think of a WORSE cause to die for. Betcha her husband wishes she would’ve stayed the fuck home!!!! You know what? I got a family. That is the most important thing. You’ll always see me defend myself by force if needed etc. but you will ever see me out myself in unneeded danger for anyone except my family or in the performance of my duties. Never to support a politician. Never!! Life isn’t that bad here. They need to grow up.

        Reply

        • Posted by Tough Love on January 8, 2021 at 3:48 pm

          Quoting …………….

          ” And it wasn’t about the stealing of the election. It was about keeping him in power. ”

          You got that right. Trump’s greatest desire was to become lifetime ruler (and then pass it on to one of his children) like Putin, Xi Jinping, or Kim Jong-un.

          Reply

    • Posted by Tough Love on January 8, 2021 at 3:37 pm

      The shooting of that woman was captured on TV. She was the first, climbing through a broken window, I don’t believe the Capital Police expected this mayhem and likely weren’t given any instructions on how to respond in different situations.

      From the TV view, it certainly seems he could have made her quickly back out via a face full of mace.

      Reply

  9. Posted by MJ on January 8, 2021 at 9:30 am

    Whatever E, you can twist it anyway you want, double standards……..no body “has it coming” unless they are a direct threat to another person but because she was part of a Trump rally she deserved it. Were the police randomly shooting into that crowd and she was the unlucky recipient of a bullet. Or was she directly threatening a police officer’s life. No, from what I read, she was walking through an broken door along with others.

    Should she have been doing that, probably not but does a young woman deserve a bullet for that while rioters smashed, looted and burned down city streets.

    BTW nobody’s life is more important than somebody else’s, that’s what BLM is about.

    Obviously, based on your comments, certain lives are more important that others.
    Honestly, hearing you say that strikes up more points for BLM for me because that is the exact mentality of cops who shoot people or inadvertently kill people “they had it coming” very very disturbing

    And hearing you say that as a LEO is even more disturbing than I would have given you credit for……

    I’ve heard enough

    Reply

    • We agree to disagree my friend. My opinion is that someone who is breaking into the House Chamber when occupied by our elected officials during an insurrection “had it coming”.
      And yes, some lives are in fact “worth” more than others. Isn’t some innocent life of a victim worth more than say Jeffrey Dahmer? Or the Vegas shooter a few years back?

      If you watched the video….she is the only one who begins to climb through a broken window to enter the chamber. Sorry bro. It’s not your 7-11. She knew goddamn well she wouldn’t have been there. What would you have said if she got in and then opened the door for the mob and some Congress people got killed?
      Cmon bro. Someone breaks into my kitchen window like that they are getting some lead. Especially if there are more to follow. As the Reese’s commercial says “sorry not sorry”
      No different the gun shop owner in Philly. Guy broke into his store than came into the office where he was hiding. He happened to be armed, but considering the circumstances that there was a RIOT in his store, whether he was armed or not is irrelevant. No duty to retreat in that situation. You may disagree with me. I like to hold people accountable for their actions. This woman was in the wrong and she paid the price.

      Reply

      • And for you to think that that is the mentality of police who inadvertently take a life is ridiculous!!!! Absurd even.
        Be honest with yourself bro. You’re giving her a pass because she was a trump supporter. You wouldn’t give a fuck if it was Antifa!!! And NIETHER would I!!!! I don’t like attempted coups my friend. You state she should probably not be doing what she did? Probably not??? Get over yourself bro. I’m a centrist. That display disgusted me the other day, and I VOTED TRUMP.

        Reply

  10. Posted by MJ on January 8, 2021 at 11:37 am

    E…wrong again

    Read my post and comprehend

    I don’t care if it is a Trump supporter or an Antifa supporter, or anybody in between, unless a direct threat with a weapon to an officer or some such scenario, nobody “deserves it”

    I don’t give anybody a pass not even you. Again I will repeat, nobody’s life is more important than someone else’s.

    Attempted coup are you kidding me? Read your history about what real coups look like and then get back to me…a coup 🙂 🙂 and maybe we can have a discussion

    These were a bunch of assholes who somehow managed to break in which is a whole different conversation about the lax security. If it was a coup they wouldn’t have been dicking around taking selfies of themselves.

    I’m done. Believe what you want…..stop watching the MSM

    UGH

    Reply

    • That’s what makes America great. You and I can agree to disagree just like TL and I do. I disagree with your first two paragraphs, that’s fine. TL thinks I shouldn’t get a pension. That’s also fine. I’m not looking to banish her to another state or something or storm into her home and do God knows what to her and her family cause on a few issues we don’t see eye to eye. You and I have more in common than we don’t. I still think that an child or good persons life has more value than say a Ted Bundy or even a Bernie Medoff. But this America. I’m NOT the Gestapo deciding who to send to the gas chambers…..nor do I want to be. Just saying I don’t mourn the loss of a Ted Bundy. The world is better without him in it.
      And you don’t think that was a attempted coup? They were trying to STOP the peaceful transfer of power by breaking into the Capitol and stealing the boxes with the sealed votes from the electors. This was done as an attempt to keep Trump in power past the date of Jan 20 at noon as our constitution Requires. It was unprecedented. They were trying to overturn a valid election. All the lawsuits were one thing. This was something different. What else could you possibly have called it? Just because it had no chance of success? And again I’d rather one of the perpetrators have died than the cop doing his job who was assaulted over the head with a fire extinguisher and is now dead. I’d trade their life for his. I’m sure his family would too. Those yahoos should’ve all stayed the fuck OUT of the Capitol and protested outside. Better yet stay home. Why didn’t they???? Because they wanted to stop the peaceful transition of power. Pence should invoke the 25th and say trump will not be at the inauguration but I will be to peacefully watch Biden take the oath. He should invite Biden and Harris to breakfast as is the tradition, and set an example for America by cheering on the NEXT president of the United States. If we don’t like him we get to vote him out in 4 years or move out of the country.

      Reply

      • Posted by Tough Love on January 8, 2021 at 4:12 pm

        Quoting …………. “And you don’t think that was a attempted coup? They were trying to STOP the peaceful transfer of power by breaking into the Capitol and stealing the boxes with the sealed votes from the electors.”

        Common E, do you really believe that this was a genuine “coup”? That would mean that the VAST MAJORITY of those at the Capital really BELIEVED that they could do more than just DELAY Biden’s becoming our next president. I don’t believe that for a minute.

        Even if they stole and destroyed the Elector Certifications, they would just be replaced with a few days delay.

        Reply

      • Posted by Tough Love on January 8, 2021 at 4:14 pm

        I REALLY hope they arrest and convict the person who hit that Officer with that Fire extinguisher.

        Reply

    • Posted by Tough Love on January 8, 2021 at 4:05 pm

      Mf/E,

      I’ve been carefully reading both of your comment (and obviously differing opinions).

      I’m somewhere in the middle………….

      With hindsight it’s easy to say that that woman didn’t “deserve” to be shot, but that’s because we now know the outcome (could have been much worse.). In case you didn’t know, one person in the crowd was arrested with an assault rifle and 11 Molotov cocktails.

      What if the Officer DIDN’T fire, making the others abandon that entry point, and one of those entering killed a Congressman or set the Capital ablaze. Wouldn’t (again with hindsight) we be saying …”if only he shot that woman” all of this could have been prevented ?

      I believe the “fault” belongs to a HUGELY unprepared Capital Police force.

      Reply

      • Posted by NJ2AZ on January 8, 2021 at 4:09 pm

        TL – spot on.

        This is the same thing i say to people when someone shoots a robber and they say something stupid like “Durrr, the penalty for robbery isn’t death!”. tell that to the victim who, in the moment, has no idea whether or not the robber will be satisfied only taking their stuff.

        No person has an obligation to leave their fate up to the benevolence of a criminal

        Reply

  11. https://nypost.com/2021/01/08/video-shows-capitol-police-cop-getting-crushed-by-protesters/

    Sorry MJ. She had it coming. As would any more of these assholes. Fuck them. God Bless America. These folks don’t represent me as a Trump voter and ALL deserve many many years in Prison. And yes!! In this instance and at that moment, that cop who is facing that and any lawmaker in that building? Yes their life IS more valuable than those insurrections. If you can’t see that for what it is than we must agree to disagree. TL? AZ? Rex? Thoughts?

    And I’ve been consistent ALL year w this. I am 1) non violent
    2) a slightly right of center conservative.
    In that order.
    Ive NEVER given the BLM folks a pass. At all.

    Reply

    • Posted by NJ2AZ on January 8, 2021 at 2:09 pm

      I’m a big believer in “play stupid games, win stupid prizes”. This lady catching a bullet because she thought storming the capital was a good idea doesn’t upset me, just like i wasn’t too upset when those three idiots got ventilated up in Kenosha

      worrying about knuckleheads getting themselves injured or killed is like worrying about whether or not the sun’s gonna come up 😉

      Reply

  12. Posted by MJ on January 8, 2021 at 5:08 pm

    NJ2AZ I never said I was worried about it I just don’t like double standards. I also don’t place more value on one life than another as we never really know what drives one’s thoughts, beliefs, actions or life philosophies. I feel it’s unfortunate that anyone gets shot or killed due to crazy situations. And I never, ever worry about the sun coming up because regardless, tomorrow is always a new day 🙂

    Reply

  13. Some off-topic thoughts:

    1) Why impeach when it would very likely lead to a Ford/Nixon ‘heal the nation’ pardon?

    2) On the other hand, the argument for a quick impeachment is, if it is really a dangerous world out there with a lot of countries wanting to attack the US, wouldn’t this be the ideal time for them to do it when nobody trusts Trump with the button?

    3) Wouldn’t it be more appropriate and send a stronger message if a few of the more vocal ‘revolutionaries’ were tried as war criminals? Right now it seems as if they are being treated like trespasers and petty thieves.:
    https://www.cnn.com/2021/01/08/politics/us-capitol-riots-arrest-pelosi-desk/index.html

    Reply

    • A big yes to #3. Lots of them are now being charged. Not much brain power there.
      I would rather see pence and the cabinet invoke the 25th

      Reply

    • Posted by Tough Love on January 8, 2021 at 7:19 pm

      John,

      If in your #1 you really meant “impeach” rather than being charged with a different crime, I believe that you are incorrect per Article II of the US Constitution (note the last 5 words below):

      Article II, Section 2, Clause 1:

      The President shall be Commander in Chief of the Army and Navy of the United States, and of the Militia of the several States, when called into the actual Service of the United States; he may require the Opinion, in writing, of the principal Officer in each of the executive Departments, upon any Subject relating to the Duties of their respective Offices, and he shall have Power to grant Reprieves and Pardons for Offenses against the United States, except in Cases of Impeachment.

      Reply

  14. Posted by MJ on January 9, 2021 at 8:04 am

    Other countries can easily attack us without firing a shot……it was confirmed that Covid-19 came from China did it not? I’m sure there are much more lethal bioweapons that have been developed that China or Russia would be happy to unleash upon us.

    As for Trump, having the nuclear codes, I’m sure there are protocols in place for such things as what happened the other day. I would think that common sense would dictate that there are protocols for keeping things under control.

    Theater of the absurd. More MSM hysteria that Trump might nuke another country.

    As far as impeaching him, at this point I personally could care less

    Have a wonderful weekend.

    Reply

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