President Biden’s administration has outlined a tax policy built upon the agenda introduced during his campaign. Biden’s tax plan focuses on raising taxes on corporations and affluent households, while increasing credits for moderate- to lower-income households. With Democratic control of Congress, changes outlined in President Biden’s tax plan have an increased possibility of becoming a reality. At what time, in what form, and to what extent remains to be seen; however, another round of tax law changes is likely on the horizon.
Having adapted to frequent, and sometimes major, legislative changes in recent years (namely the TCJA, the SECURE Act, the CARES Act, and most recently, the American Rescue Plan Act), your clients are understandably concerned about what changes could be imminent. While recommendations may be premature, it is important to proactively engage with your clients regarding potential future tax law changes. By familiarizing yourselves with President Biden’s tax plan now, you and your clients will be positioned to take action and seize planning opportunities when changes are implemented.
We have created this checklist to guide your conversations regarding the highlights of President Biden’s tax plan. Please take a look at this and the companion piece “As A High-Income Taxpayer, How Might President Biden’s Tax Plan Affect Me?” and consider how these resources may be of use to you and your clients.
Updated for 4/1/2021