President Trump has publicly supported a Federal tax increase to 39.6% (currently, 37%) on the wealthiest Americans. The proposal is to increase the Federal tax bracket by 2.6% of individuals making more than $2.5 million (married couples more than $5 million). This change is intended to generate roughly $60 billion over 10 years, which could be used to fund extended tax relief for middle- and working-class families.
Note that this proposed tax increase is still under discussion and faces political headwinds, even within the Republican Party, so the probability of materializing is low. Also, there are still options to reduce the tax impact if this became a reality like timing of income, business structures with lower tax rates, etc.
We specialize in strategic tax planning tailored to high-income earners. Our team is proactive in helping clients navigate proposed legislative changes—well before they become law. Whether it’s mitigating income exposure through pass-through optimization or appropriate business structure, our goal is to help you stay compliant, save money, and plan with confidence.
If you need a second opinion on your tax strategy, let’s discuss how these proposed changes could impact your long-term financial plans.
Foxnews’ article – Trump considers tax hike on Americans making $2.5 million or more per year
CNN’s article – Trump floats raising taxes on the rich to pay for his sweeping tax and spending cuts package
ITEP’s blog post – Trump’s Proposed Higher Tax Rate on the Richest Taxpayers Would Affect Very Little of Their Income
