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In this week’s Hidden Wealth Review, I teach about the newly proposed Global Minimum Tax initiative and the “STEP Act.” As I speak with Baby Boomers and retirees all around the country, I find that many people are not aware of all the Biden tax targets. Even our firm is being challenged to keep up with all of the tax targets that this administration is using to go after those who I call “the makers.”
A recent article in The National Review said that these actions will “kneecap” corporations’ ability to compete. The Global Minimum Tax doubles the minimum tax that companies pay on earnings outside of the U.S. from 10.5% to 21%.
We all know that corporations don’t really pay higher taxes, they just pass those increased taxes along to consumers in the form of higher prices on their goods and services. This is just an indirect tax on everyone. So, when Joe Biden tells you that only those earning over $400,000 a year will pay higher taxes, that’s not exactly true.
The sheer number of Biden tax targets is quickly getting out of control. It’s hard for me to keep track of them and I’m a student of the tax code.
The STEP Act is a huge concern. STEP stands for Sensible Taxation and Equity Promotion. The aim of this bill is to go after the step up in basis at death. The step up in basis tax treatment today allows assets to be passed on without capital gains tax. This administration wants to change the step up in basis value to go back to a transfer of the original basis.
For example, you have an original cost basis in your portfolio of $500,000 and when you pass, the value of the portfolio has risen to $1.5 million. As the code is currently written, your beneficiary gets to step up the original basis to the value of the asset at your your death.
The newly proposed change would eliminate the step up of the original basis and would require the transfer to be the original basis of $500,000. The resulting impact to the beneficiary would be a $1 million capital gain!
The new proposed tax law changes are targeting higher capital gains tax to be taxed at ordinary income tax rates and go as high as 44% for gains over $1 million. The other tax target is to also lower the estate tax threshold as low as $3.5 million and raise the estate tax to as much as 65%!
If you have large capital gains or a sizable estate, you should be concerned about these Biden tax initiatives. If you’ve saved most of your retirement money in tax-deferred accounts such as 401(k)s and IRAs, you should be equally concerned, as they are going to raise income tax rates, as well.
I want to share with you how we were able to help Chad and Susan, from Illinois. We taught them how to Roth convert $300,000 from their traditional IRAs to a Roth IRA with zero tax! They did this using techniques that I will be teaching in my Retirement Reinvented Webinar on Tuesday.
How do I protect my retirement from unnecessary estate taxes?
The good news is that there are things you can do to protect yourself, your family and your estate from unnecessary taxes. Many people are unaware that there are deductions you can take to zero out the tax that results when you convert your traditional IRA to a Roth IRA. This allows you to get your retirement income tax-free, it allows you to pass your assets to your children tax-free and you can offset your capital gains taxes.
I will be teaching these solutions at my Retirement Reinvented Webinar, being held this coming Tuesday. This no-cost, no-obligation, log and and learn event will teach you how to safeguard your retirement savings, your retirement income and your estate from a tax hungry administration.
Getting tax savings planning done will be key before the end of 2021! Untax your retirement income and assets now, before the Biden tax increases start to take hold at the beginning of next year. The good news is that there’s still time.
You’ve worked hard for your money. Imagine, more financial success and having 50% to 100% higher spendable income, just by getting Uncle Sam and the IRS out of your IRAs. Learn how to reduce or eliminate your Required Minimum Distributions (RMDs). Get rid of your capital gains tax targets and protect your estate. Protect your serious savings and assets so that the government doesn’t grab them.
Let’s get to work! To register for Tuesday’s no-cost, no-obligation, log on and learn event, follow these four simple steps:
- Go to www.RetirementProtected.com (or scroll down to the form below).
- Select the webinar date/time you prefer.
- Enter your information thoroughly – make sure to double check your email address.
- Click “Reserve My Spot!” to submit, that’s it!
Once you’ve registered, you’ll receive an email containing a personal access link to join Tuesday’s event. Don’t forget to add it to your calendar!
Joe Biden’s tax plans are targeting high income earners, those with large capital gains as well as those with estates valued over $3.5 million. We find those higher income earners of $200,000 or more or those who have saved $1 million or more benefit the most from our proven solutions with a track record of measurable results.
Register for your preferred webinar time now because these events have proven to fill up fast.
Those who attend this event will receive a complimentary copy of my latest eBook:
The Baby Boomer Retirement Breakthrough-The Unfair Advantage to a Safe and Secure Retirement.
Spouses and Significant Others are Encouraged to Attend This Event Together
Note: We serve Boomers and Retirees all over the Unites States. We have an efficient, supported process to meet online, as have been doing for over 20 years. Our online meetings are private, the access is restricted and we never share our meeting link with anyone who’s not a part of the meeting.
Wealth Strategist | Best-Selling Author
We help Baby Boomers and Retirees thrive in retirement through a clear retirement road map that provides market correction and tax protection to optimize income and assets!