With the democrats attempting to push their plans through congress here are a few changes they want to implement on the tax side of things as of September 17th 2021:
- Extend the new larger child tax credit and dependent care credit to future years
- Increasing top individual income tax rate from 37% to 39.6%
- Increasing capital gains rate from 20% to 25% for individuals in the 39.6% tax bracket
- Disallowing the Roth IRA conversion for taxpayers with income $400,000+
- Limiting the ability of the Roth IRA and 401k conversions for other income brackets
- Increasing the C-Corporation tax rates to 26% for C-Corporations with $5 million+ in income and reducing small C-Corporation tax rate from 21% to 18%
- Give the IRS $80 billion to increase audits and update technology
- Adding the 3.8% surtax onto S-Corporation income pass-through to owners.
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