By Brittany De Lea FOXBusiness
Biden’s plan could result in marginal tax rates of more than 60% in three states and New York City.
Democratic nominee Joe Biden’s tax plans have come under scrutiny for designs to raise rates for wealthy Americans – but some experts say they could also contribute to an exodus from high-tax states.
There are a combination of measures within Biden’s tax plan that will affect the finances of the wealthy through a stated concentration on people earning more than $400,000.
First, the former vice president would increase the top income tax bracket to 39.6%, from 37%.
He has also called for capping itemized deductions at 28% for the wealthy, and exposing incomes above $400,000 to the 12.4% Social Security tax (currently, there is a wage cap of $137,700).
There are also changes that have been proposed involving the estate tax basic exclusion amount, step-up in basis and capital gains taxes.
Beau Henderson, financial advisor and founder of RichLife Advisors, said he has clients who are actively considering relocations to lower-tax areas as a means to stretch their retirement dollars – a trend he said could “accelerate” if these changes were to go into effect.
- New Hampshire polls signal tight 2022 Senate race
- Greg Abbott appoints former Trump attorney as secretary of state
- Loudoun County can’t stop lying
- Inspector general insists McCabe lied repeatedly after Biden DOJ reverses firing
- Vaccine mandate will have ‘catastrophic’ effect on jobs, business group warns Biden
- Vermont Woman Fired, Denied Unemployment for Refusing Vaccine, Becomes Homeless and Flees to Florida on
- Trump Promises ‘Orderly Transition’ After Biden Certified as President-Elect on
- Trump Says Supreme Court ‘Incompetent and Weak’ Over Election Fraud on
- NH’s Voting Machines Are Capable of Redistributing Votes on
- Dominion’s Parent Company Arranges $400 Million Placement 1 Month Before Election: SEC Filing on