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From the New York Times, 30 April 2021:
“How the Wealthy Are Trying to Anticipate Biden’s Tax Increases
Financial advisers say they have been flooded with calls from clients who are trying to predict which of President Biden’s tax proposals will become law.
President Biden this week proposed significant increases in taxes on the wealthy. And while the details are likely to change as the legislation makes its way through Congress, wealthy Americans were scrambling to lock in tax savings before they even knew what the proposal was.
The proposed higher taxes on income and capital gains — which would nearly double for the highest earners — were expected. But the American Families Plan, as the White House calls it, was silent on an anticipated increase in estate and gift taxes. Instead, it included a provision requiring heirs to pay capital gains taxes on assets above a certain amount that they inherit.
Advisers to the wealthy say they have been flooded with requests to make plans for what any eventual tax changes will be. And assuming that the president’s proposal will not go into law as is, they have been asking their advisers for help in understanding what could be added from the “For the 99.5 percent” plan floated by Senators Bernie Sanders and Elizabeth Warren and others.
“I don’t know where we’re going with any of these taxes,” said Bill Schwartz, managing director of Wealthspire Advisors, which advises clients with $5 million to $20 million in assets. “But I do know it’s really difficult right now to justify what people call a loophole or what I call using the tax code to your advantage. In fact, it’s really hard to justify any of these techniques for the affluent right now, not that I think they’re right or wrong.”