June Newsletter
As a service to our clients & friends, below please find a summary of what we've been reading and speaking about with clients over the past month.
Biden Budget Said to Assume Capital-Gains Tax Rate Increase Started in Late April:
President Biden’s $6 trillion budget assumes that his proposed capital-gains tax rate increase took effect in late April, meaning that it would already be too late for high-income investors to realize gains at the lower tax rates. Mr. Biden’s plan would raise the top tax rate on capital gains to 43.4% from 23.8% for households with income over $1 million. He would also change the tax rules for unrealized capital gains held until death
Source: Wall Street Journal
Manchin, Democrats Back Eliminating Carried Interest:
Senators Tammy Baldwin of Wisconsin and Sherrod Brown of Ohio joined with West Virginia’s Manchin to introduce legislation that would end the carried interest tax breaks used by private equity money managers and others to lower their tax bills. The bill would require that carried interest profits -- which under current law can be taxed as low as 20% -- be subject to the same tax rates as other income.
Source: Bloomberg
Advanced Tax Strategies for Startup Founders:
Smart founders and early employees should closely examine their equity ownership, even in the early stages of their company’s life cycle. Items to consider include issues related to qualified small business stock (QSBS), gift and estate taxes, state and local income taxes, liquidity, asset protection, and whether you and your family will retain control and manage the assets over time
Source: Techcrunch
Changes to New York Power of Attorney Form:
The long-awaited modifications to the form, which were enacted in December 2020, become effective on June 13. Please consider this and other prospective law changes an excellent time to review your overall estate plan. A summary of the key changes to NY's POA Form can be found here
Source: New York State Bar Association
What Caused The Roaring Twenties? Not the End of a Pandemic (Probably):
On the surface, the similarities abound: A society emerges from a catastrophic pandemic in a time of extreme social inequality and nativism, and revelry ensues. But, historians say, the reality of the 1920s defies easy categorization
Source: Smithsonian Magazine
