Biden announced his budget proposal for 2025 on March 11, which could impact one’s estate and its taxation.
The budget’s complete title is “General Explanations of the Administration’s Fiscal Year 2025 Revenue Proposals.” Within the document, Biden unveiled his plan for stronger taxation on the nation’s wealthiest, including those who will inherit these lofty estates. These increased taxes are not definitively in the works, as they must be passed by Congress, but could promote widespread change in wealth distribution.
These changes are intended to promote a redistribution of wealth across America. According to Forbes, the higher taxes would likely go toward funding social programs and addressing the wealth gap that prominently impacts communities of color. However, for those with more to lose from these legislative updates, Forbes suggests that wealthier individuals start planning now to protect and gain the most from their assets.
Biden intends to
nearly double the capital gains tax rate, which was lowered during the Trump administration. Any income exceeding $1 million would face taxes at ordinary rates of 37%-39.6%, a much higher tax rate than the current 20%. His plans would also evoke new taxes on gifts of assets or upon one’s death. However, this would only impact richer Americans due to its $5 million exclusion. However, this realization includes collectibles like high-value artwork.Preparation should
occur as the election year means either Trump or Biden could take over the Oval Office. Whatever the outcome, one should further secure their assets in case taxes become stricter. Detailing the Biden budget as “harsh,” the publication promotes the creation of trusts and gifts for loved ones before any new tax laws. Thankfully, there is still time, with any legitimate deadline not being until the year’s end.The business platform encourages flexibility in
one’s financial strategy to make the most of monetary and valuable holdings. Incorporating “tax planning techniques” into money management is the safest course of action to maintain one’s money despite uncertain rates and regulations.RELATED CONTENT: Debate Over Taxes And Reparations: Insights From Tiffany Cross, Angela Rye, And Andrew Gillum