Business Taxes Now and After the Election

What will happen to business taxation now that the election is over. Joe Biden has promised to raise taxes. We’ll provide some information on changes that he would like to implement. Of course, whether he can raise taxes will depend upon the Georgia senate elections in January. We do not discuss what impact tax increases at this time would have on jobs and the economy.

CURRENT BIDEN

Corporation Tax Rate 21% 28%

If book income is more than $100M than a 15% “minimum tax” is imposed on book profits, reduced by foreign tax paid and/or loss carryovers

Qualified Business Deduction 20% deduction for pass- Deduction phased out for taxpayers earning more than $400,000

through business (e.g., LLCs,

S-Corporations, etc.)

Foreign Production No tax or penalty 10% penalty surtax on profit when products manufactured abroad but sold

in the United States

U.S. Jobs Credit No such credit 10% credit for jobs created in the U.S. or increases in manufacturing wages