Presidential State of Union tonight. Expect the following regarding Tax Reform. They would be proposals and not law: 1) Eliminating Stepped-Up Basis at death. The means heirs will maintain the decedents lower basis and pay higher tax when liquidating what was left to them. 2) Raising Capital Gains & Dividend Rates. Currently they are at 15% or 20% for higher earners. Presidents plan would return them to 28% rate. 3) New Tax Credit for Double-Income Families. For families up to $120,000 it would credit $500 to their account at tax prep time. At $210,000 it would phase out completely. 4) Increasing Child Care Incentives. Up to $3,000 for middle earners with children under five years old. 5) Revamp Education Tax Benefits. Could allow more students to qualify for the up-to $2,500 tax credit. Also proposes to repeal the deduction for student loan interest. 6) Boosting IRS options. Employers with more than 10 employees would be required to enroll workers in an IRA. There would be credits offered to offset the cost to the employer up to $3,000. Again, these are anticipated proposals that will certainly meet with disapproval among Democrats & Republicans alike. Well see if any compromise will make these proposals to final law.
Posted on: Mon, 19 Jan 2015 21:43:10 +0000
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