Wealthy Americans are preparing for a possible Joe Biden Trojan horse presidency. They are setting up trust funds and even selling off their businesses to avoid the huge tax increases that would follow a Biden election and avoid the heavily taxed inheritances. Anytime that money is placed on the shelf and not invested, it hurts the economy.
Tax professionals are stepping up their game knowing that a Biden presidency will increase their business greatly. They all want to be ready to cash in on the rush to protect wealth.
This is especially important since Biden wants a wealth tax on the rich. He has not even stopped to think about how he would be drying up venture capital needed to grow businesses.
Biden plans to double the transaction taxes, meaning that anyone who sells their business under Biden will have to pay a 40% transaction tax rather than the current 20%.
The problem could be that there are a lot more sellers than there will be buyers. People will be wary of buying businesses under a Kamala Harris administration.
Suzanne Thau, a trusts and estates attorney with Schwartz Sladkus Reich Greenberg Atlas said:
“Everything is being fast-tacked because of the election. It’s just an explosion in estate planning.”
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As part of the 2017 Tax Cuts and Jobs Act, President Donald Trump increased the amount of money wealthy people can gift to their heirs during a lifetime without paying an estate or gift tax to $11.58 million each, or $23.2 million per couple. Originally, the exemption was for any gift up to $5.49 million, per Reuters.
A Biden win could cut that number down to $3.5 million and increase the current estate tax rate to 45%, up 5% from current tax rates. Biden would also do away with a step-up basis which allows families to avoid paying capital gains on appreciated assets that are passed down or given at death, per CNBC.
Americans will have to be heavily taxed in order to pay for free healthcare for 22 million illegal aliens. They will also have to pay for the major influx of illegal immigration after the Democrats fling the borders wide open. And don’t forget the green new deal and guaranteed income for people whom refuse to work.