The Federal tax policies currently discussed in Congress

  • Tax increases: marginal rate 39.6% on over $400K of income (currently 37%).
  • Expand the 12.4% SS tax. Retain the 12.4% EE & ER rate up to $142,800. Not SS tax between $142,800 & $400,000, then apply 12.4% over $400,000.
  • 39.6% rate applied to Capital gain over $1000K.
  • Eliminate the step-up basis at death
  • Cap the itemized deduction tax benefit to 28%
  • Restore the 3% PEASE limitation (limitation on itemized deductions for high earners).
  • Add a new section 199A deduction phase out.
  • Restore the SALT deduction (State & Local Tax).

Note that

Congress may have the ability to enact retro-active tax legislation thereby limiting the ability to front-run changes. As of today, no new legislation has been enacted.

I created this blog to help understand certain basic aspects of U.S. tax law. Of course, each situation is unique and nothing that is on this site will ever replace the expert advice of a tax professional.