One thing's for sure: President Joe Biden proposes tax hikes for wealthier taxpayers and for corporations, as well as unspool-ing other parts of 2017's tax reform. What tax laws will change first, especially as the economy continues to struggle under the pandemic? "Estate tax limits," predicted Scott Hoppe, a CPA at Why Blu in San Francisco. "The top tax rate," said Ann Etter, a CPA and partner at Goodney & Associates, in Northfield, Minnesota. Also "the corporate tax. The small corps got a tax increase out of this. The anti-corporate sentiment is building." "Tax rates for corporations, then tax rates for individuals, then a few other controversial provisions like the state tax cap, bringing back miscellaneous itemized deductions, and so on," said Daniel Henn, a CPA in Rockledge, Florida. Among other things, Biden's headline proposals include raising the top rate on taxpayers making more than $400,000 per year, and increasing capital gains and dividend tax rates for taxpayers who bring in more than $1 million annually. Also on the table: a cap on charitable deductions, and additional Social Security tax for those earning more than $400,000. (Some have called the latter a laudable fix but at an unreasonable cost to affected individual taxpayers.) Many of these proposals seem more possible given the overall election results. Following Democratic control of Congress, "The first change to get pushed through will be an increase in the corporate income tax rate," said Enrolled Agent John Dundon, president of Taxpayer Advocacy Services in Englewood, Colorado. "Why? Because 'corporations are people too' and someone has to pay for the excesses of the last decade."
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