Family Offices Watch as Biden Wants Retroactive Capital Gains Tax Rate
Posted on 05/28/2021
U.S. President Joe Biden’s proposed US$ 6 trillion budget for the upcoming fiscal year assumes that a hike in the capital-gains tax rate took effect in late April. This would mean it already would be too late for high-income investors to realize gains at lower tax rates. Biden seeks to increase the top tax rate on capital gains to 43.4% from 23.8% for households with income over $1 million. To have this come true, U.S. Congress must pass any hikes and retroactive effective dates.
The 43.4% rate is Biden’s preferred 39.6% (plus an ACA surcharge).
Guns and Butter, Just Butter Please
The US$ 6 trillion budget would take the U.S. to its highest sustained levels of federal spending since World War II.
The structure and dynamics of family offices are often as varied as families themselves. According to the U.S. Federal Reserve, more than two-thirds of all U.S. families have some unrealized capital gains, but most would be covered by the US$ 1 million exemption.