Individual Taxes Now and After the Election

What will happen to our taxes after the election? Candidate Joe Biden has promised to raise taxes, at least for some. We’ll provide some detail on the changes to expect if he wins the election, but not what impact tax increases will have on job growth and the economy. Of course, the changes that Joe Biden will be able to make will depend on which party controls the Senate.

CURRENT BIDEN

Individual Tax Rate (top rate) 37% 39.60%

Capital Gains (top rate)  20% 39.60%

Estate Tax $11.58 million exemption $5 million exemption after 2025

Basis of inherited assets stepped-up Eliminate step-up in basis

Child Care Credit Credit partially offsets child care Increase dependent care credit

and disabled dependent living in to $8,000 or $16,000 for more 

the same household than one child. Credits phased out for income of

$125,000 and up.

Student Loans Loan forgiveness may be income Student Loans could be cancelled tax-free.

$10,000 of loan relief for each year of national and/or

community service—maximum of 5 years.

Payroll Tax Payroll tax applied up to $137,700 Impose payroll tax on earnings over $400,000

Real Estate Like-kind Exchanges defer taxation Eliminate like-kind exchange rule

Low-income housing credit Expand low-income housing credit

Create $15,000 first-time homebuyer credit.

Create renter's credit to help low-income families.

Health Care Credits for premiums for low-income Relax the low-income cap on tax credit eligibility and

taxpayers under Affordable Care Act and lower the Medicare eligibility age to 60

Medicare eligibility at age 65 Lower cost of coverage from 9.865 of income to

8.5% of income. Provide option for all to buy public

health insurance option—similar to Medicare.