In recent discussions about potential tax reforms, one of the proposed changes includes raising the corporate tax rate from 21% to 28%. This article explores the implications of such a change and why even those with assets below $100 million should pay attention.
Breaking Down the Proposed Changes
Current Corporate Tax Rate: 21%
Proposed Corporate Tax Rate: 28%
Impact: When combined with state taxes under the Biden administration's budget, this could lead to tax increases in the range of 3 to 5 trillion dollars.
Why Should You Care?
While the government might claim that these changes will only affect the wealthiest individuals and corporations, there are reasons to be cautious:
Historically, tax changes aimed at the wealthy have often expanded to affect a broader range of people over time.
Even if your assets are below $100 million, there could be indirect effects on the economy, business growth, and investment opportunities.
Understanding the nuances of such proposals can help in financial planning and risk assessment for future ventures.
Conclusion
It is crucial to remain informed about policy changes and their potential ramifications. The corporate tax rate increase proposal is a significant topic that could have far-reaching consequences for both individuals and businesses alike.
Full Transcript
She would raise the corporate rate from 21 to 28 percent. Combine that with the taxes in a number of states in the Biden budget. Would result in tax increases in 3, 4, 5 trillion range? What they would probably say is we're only going to do that for rich people. So everybody out there who has an answer below 100 million, they all go, okay, I don't have to worry about that. But let me tell you why you really should worry about it. I have never seen a proposal like that, get enacted with a high level where it impacts people and stay there.
