Biden wants to change the way that the wealthy pay taxes.
This means:
Increasing the top tax rate to 43.4% for those earning over ~$500K
Take away the long-term capital-gains tax break, so selling assets held for over a year would go from 23.8% to 43.4%
Cancel the step-up-in-basis benefit upon death; meaning that if you inherit a portfolio of assets, you instantly have to pay whatever taxes your benefactor would have owed if he or she sold those assets today.
For example, Jeff Bezos's heirs would have a brand new $36B (or $72B if long term cap gains taxes are changed) tax bill to pay upon inheritance.
Cancelling the 1031 exchange policy that allows one to roll from real estate investment to real estate investment without paying taxes in between.
There is more, and it's downright punitive to the folks in the highest income tax bracket.
Interestingly, it seems like Biden backed off earlier threats to increase estate tax, which leaves a lot of room to make significant moves that could save roughly ~$15M compounding if done correctly this year.
The entire investment world is glued to these new tax proposals, especially since the democrats have the critical mass to push them through to the finish line.
If these proposals are even partially transformed into law, they will completely change the entire landscape of how investments are made and estates are managed going forward.
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