| What's ahead for your taxes if Biden wins the election | | |  | WED, AUG 19, 2020 | | | | As former vice president Joe Biden prepares to accept his party's nomination for president this week at the Democratic National Convention, high-income earners are beginning to wonder if it's time to revisit their tax plans. CNBC's Darla Mercado takes at look at what's ahead for your taxes if Biden wins the presidential election.
Here's what we know: Biden has called for rolling back a lot of the Tax Cuts and Jobs Act, which trimmed income tax rates. He has proposed raising income taxes and Social Security taxes on wages of more than $400,000. Additionally, long-term capital gains and qualified dividends would be subject to ordinary income taxes — 39.6% — for those with income over $1 million, and the step-up in basis at death would be eliminated.
To be sure, the proposed changes under a Biden administration may seem earth-shattering to the wealthiest households.
Of course, for this to happen, Mercado reports, not only would Biden have to win, but Democrats would have to capture the Senate and maintain their House majority. For those reasons, financial experts urge investors to watch and wait and not to make any drastic financial planning moves just yet.
To that point, making financial decisions now and moving assets based on an election that may go a certain way — and based on tax policies that may or may not be created — is a little too risky, one expert said.
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