Biden pledged not to raise taxes on any household with an annual income under $400,000. I went through his 256 page tax proposal to analyze whether that's true. Here are the details:

Currently, individuals with a modified adjusted gross income of $200,000 (single) or $250,000 (joint return) are subject to a 3.8% tax on net investment income (interest, dividends, rents, annuities, disposition of property)

The proposal would actually expand the definition of investment income to include all pass through business income (like S corporation income), subjecting them to the 3.8% tax. Many S corps are small business owners who will now need to pay significantly more in taxes...

Long-term capital gains (LTCG) are taxed at graduated rates based on the taxable income, with 20% being the highest rate. The proposal would make LTCG for taxpayers with income of more than $1 million to be taxed at ordinary rates, with 37% being the highest rate.

You might say, "It's only for $1M income!" But think about this: a family bought a duplex in California in the 1990s. They never made $150,000. Now, that property might be worth significantly more. The new proposal would make them pay more than 15%+ in additional taxes...

Currently, owners of appreciated property can defer gain on the exchange of the property for real property of a “like-kind.” (§1031 exchange). New proposal would allow deferral of only up to $500,000. I know many mom-and-pop investors making significantly less than $200,000…

Raising the rate corporate income tax rate would lower wages and increase costs. Raising the corporate income tax rate would force companies to take headquarters and earnings overseas. Raising the corporate income tax rate would weaken the economy. Aka the indirect taxation.

While many of the proposed changes do impact people making $400,000 or more: → Backdoor Roth and Mega Backdoor change → NIIT and additional Medicare tax increases People making less than $400,000 will still face increased taxes, both directly and indirectly.

I spend many hours going through the proposal, so please: 1. Give me @money_cruncher a follow so you can stay up-to-date with all the tax changes 2. Retweet the first post so others can learn about this proposal.

@money_cruncher What was the Corp rate prior to trump changes? Did he in fact lower taxes for those earning a mil plus?

@money_cruncher I’d be ok with the 21% rate if profitable corporations actually paid that much. So many loopholes written into the code that the effective rate is much less. Amazon pays about 6%. They could pay more and still pay workers and not raise prices. How much is enough?

@money_cruncher Higher domestic corp rate also widens the GILTI net by raising the high-tax exemption threshold substantially- resulting directly in increased taxation of small US business owners with overseas business entities.