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Morgan Stanley: "The Biden Tax Proposal: Answers to 5 Top Questions"
Posted on 4/27/22 at 2:45 pm
Posted on 4/27/22 at 2:45 pm
Bend over Red Rover!
1. Will my federal income and capital-gains tax rates change?
The proposed tax plan would restore the top marginal income-tax rate to 39.6%, the same rate before the Tax Cuts and Jobs Act of 2017 cut it to 37%.
2. What is the proposed change to federal capital-gains taxes on inherited assets?
The Biden proposal would treat death as a recognition event that would trigger income tax on any appreciated assets owned by the decedent at death. The Biden proposal includes a capital gain exemption of $1 million per person, or $2 million per couple. That exemption would be in addition to the existing exemptions of $250,000 per person or $500,000 per couple on the sale of a principal residence.
3. Would the proposed reforms limit how much wealth I can give away free of federal estate and gift taxes?
Unless Congress makes changes to existing law, after 2025, the exemption will revert back to a $5 million exemption per person (adjusted for inflation).
4. Could tax increases affect the economy and the stock market?
In short, higher federal capital-gains taxes have not directly translated into negative or positive equity returns.
5. Could tax increases on corporations hurt their earnings?
President Biden has said he would like to raise the federal corporate tax rate from its current rate of 21% to 28%.1 According to the Morgan Stanley and Co. Research team, raising the corporate income tax to 28% could lead to a 6% decline in earnings for the S&P 500 in 2022. If the rate were raised to just 25%, the projected earnings decline would be 4%.
Morgan Stanley
Edited by admin to fix the bold.
1. Will my federal income and capital-gains tax rates change?
The proposed tax plan would restore the top marginal income-tax rate to 39.6%, the same rate before the Tax Cuts and Jobs Act of 2017 cut it to 37%.
2. What is the proposed change to federal capital-gains taxes on inherited assets?
The Biden proposal would treat death as a recognition event that would trigger income tax on any appreciated assets owned by the decedent at death. The Biden proposal includes a capital gain exemption of $1 million per person, or $2 million per couple. That exemption would be in addition to the existing exemptions of $250,000 per person or $500,000 per couple on the sale of a principal residence.
3. Would the proposed reforms limit how much wealth I can give away free of federal estate and gift taxes?
Unless Congress makes changes to existing law, after 2025, the exemption will revert back to a $5 million exemption per person (adjusted for inflation).
4. Could tax increases affect the economy and the stock market?
In short, higher federal capital-gains taxes have not directly translated into negative or positive equity returns.
5. Could tax increases on corporations hurt their earnings?
President Biden has said he would like to raise the federal corporate tax rate from its current rate of 21% to 28%.1 According to the Morgan Stanley and Co. Research team, raising the corporate income tax to 28% could lead to a 6% decline in earnings for the S&P 500 in 2022. If the rate were raised to just 25%, the projected earnings decline would be 4%.
Morgan Stanley
Edited by admin to fix the bold.
This post was edited on 4/28/22 at 7:41 am
25
Posted on 4/27/22 at 2:46 pm to MrLSU
Explain this to me like I'm Joe Biden.
Posted on 4/27/22 at 2:47 pm to MrLSU
frick Biden and his lying arse.
Posted on 4/27/22 at 2:47 pm to MrLSU
Most people don't even realize that we pay the corporate taxes too 
Posted on 4/27/22 at 2:47 pm to TheFonz
quote:
Explain this to me like I'm Joe Biden.
quote:
Bend over
Posted on 4/27/22 at 2:48 pm to MrLSU
Good thing my parents are poor
Posted on 4/27/22 at 2:49 pm to TheFonz
More slush money to flush through Ukraine for those inside the Beltway.
Posted on 4/27/22 at 2:49 pm to fallguy_1978
quote:
Most people don't even realize that we pay the corporate taxes too
What?
Posted on 4/27/22 at 2:50 pm to Mingo Was His NameO
You don't think corporate/business taxes are factored in to the cost of goods and services sold?
Posted on 4/27/22 at 2:52 pm to fallguy_1978
quote:
You don't think corporate/business taxes are factored in to the cost of goods and services sold?
Raggedy Ann said that corporations would eat those costs
Posted on 4/27/22 at 2:53 pm to MrLSU
Elections
Have
Consequences
on taxpayers.
Have
Consequences
on taxpayers.
Posted on 4/27/22 at 2:54 pm to fallguy_1978
quote:
You don't think corporate/business taxes are factored in to the cost of goods and services sold?
Yes, and I think most people that finished the 4th grade realize it too.
Posted on 4/27/22 at 2:54 pm to MrLSU
My IRA is with Morgan stanley. Checked it this morning.... Down $20,000 in a week. $45,000 in the last two months.
frick Joe Biden and his entire administration
frick Joe Biden and his entire administration
Posted on 4/27/22 at 2:55 pm to MrLSU
Who does this benefit? Corporations outside the US. Hey, guys, is China outside of the US? So essentially, this is kind of the opposite of a tariff.
Posted on 4/27/22 at 2:55 pm to MrLSU
quote:
President Biden has said he would like to raise the federal corporate tax rate from its current rate of 21% to 28%.
sounds like a great idea
Posted on 4/27/22 at 2:57 pm to MrLSU
Oh yay! We haven’t had a thread in a while where middle class schmucks defend policies that disproportionately benefit the wealthy!
Posted on 4/27/22 at 2:58 pm to Mingo Was His NameO
quote:
Most people don't even realize that we pay the corporate taxes too
What?
Increasing corporate tax rates 7% would absolutely hit consumer prices. It degrades their margin and they don't just sit there happy with lower margins.
Posted on 4/27/22 at 2:58 pm to The Spleen
quote:
Oh yay! We haven’t had a thread in a while where middle class schmucks defend policies that disproportionately benefit the wealthy!
Increasing corporate rates affects everyone that owns a stock, and making death a taxable event is just so absurd I don't even know where to start. That's the most fundamental taxation without representation example there is. Hey, you died so you can't defend yourself, we'll take a portion of your assets. Cheers thanks.
Posted on 4/27/22 at 2:59 pm to Mingo Was His NameO
quote:
Yes, and I think most people that finished the 4th grade realize it too.
You underestimate how stupid the general public is. Plenty of people cried when Trump lowered the corporate rates.
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