Now that we are reaching the end of an extended tax season, it may be time to start looking to the future. This may be necessitated more than usual since the whole country is focusing their eyes in that direction.
Last week, President Joe Biden gave his first address to Congress and it is clear where he wants that future to go. I am not going to get into deep policy matters here, but the Cliffs Notes version is he has a lot of plans and programs he wants to implement, they are going to cost a lot of money, and he wants to fund them by increasing taxes on the wealthy.
Just how much Biden is able to get passed is going to take some trudging through the mire of the political wasteland to figure out. His dream is a large, sweeping bill that covers many areas but practicality may necessitate breaking it up into smaller portions. And no matter how any of those plans get passed, the tax increase that will theoretically fund it could take another vote.
So first, for those who want a deeper look into what may be coming on the tax front, follow this link for a quick, easy-to-understand overview from CNN.com that tackles the highlights.
But second, even if you read that and it frightens you, don’t act too rashly.
Remember it was not that long ago (even though it kind of feels like ages have passed since then), that Donald Trump entered the presidency with promises of vast changes to the tax system. And yes, he got them. But it took him about a year and a half to get there and that was with a little more congressional sway than Biden appears to have right now.
I know that I caution such things often, but this is another time when it seems appropriate - you have to operate under the rules that are already in place. It could also be good to try to separate political emotion from any acts we take. Yes, there are people who greatly benefited from Trump’s move. Yes, many of those people would then be the ones who pay more in taxes under Biden’s plan. Worrying and dreading such passage is only going to make it feel bigger than it is, though.
So for now, be knowledgeable, Know what might be coming that could affect you. The current rules are still the current rules, though, and you can do what you can to use them to your advantage. If the rules change, then use those new ones to your best advantage. At no point does one need to throw their hands up, for with knowledge comes the advantage of time to plan for what you will do when things change. Steady action will serve you better than inflamed passion.
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