Tax provisions in the Build Back Better Act
I have selected 15 provisions that will affect many of my clients. Basically, I find the bill to be extremely flawed. However, there are a few provisions I support, but very few. Let me hear from you on what you think.
- One year extension of expanded child tax credit; permanent extension of refundability. I am not a fan of this provision. Social engineering through the tax code is not good policy as far as I am concerned.
- Extending expanded earned income tax credit. My comments are the same as above.
- SALT deduction cap increase. Not a fan of any provision that results in low tax state citizens (Floridians) subsidizing high tax state citizens.
- Expanded (Health insurance) premium tax credit. Same as one and two.
- 15% minimum tax on profits of large corporations. This only applies to corporations that have over a $1 billion in profits reported to shareholders. Therefore, I like this provision.
- 1% surcharge on corporate stock buybacks. I think this is a ridiculous attempt to tax corporations. However, it won’t affect my small business clients so I can live with it.
- Small business stock and high-income taxpayers. Another disguised tax increase on taxpayer’s with AGIs over $400k.
- Wash-sale rules. I believe the wash sale rules should be eliminated not expanded.
- Net investment income tax. Another disguised tax increase on taxpayer’s with AGIs over $400k.
- High-income surcharge. A stealth tax on the wealthy. This allows Congress to pretend they didn’t raise taxes. I don’t like any tax that allows Congress to hide from the tax increase they voted for.
- Green energy incentives. I don’t like the tax code being used for non-revenue producing purposes. These incentives pervert the free market. I believe we should penalize entities and people who are polluting the air, water, and soil. But leave the tax code out of it!
- Electric vehicle tax credits. Same as above.
- Retirement plans. I can live with these provisions. I guess I’m not a purist.
- Housing credits. I don’t like credits for the wealthy any more than I like them for the poor.
- I’m sorry, but the IRS desperately needs more funding. They are not able to effectively administer the tax laws of our country with their current resources. The delays in refunds, communications, and all IRS actions make it nearly impossible to professionally work in the tax industry. The lack of funding hurts all honest taxpayers.
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