President Biden’s 2025 budget proposal would nearly double that capital gains tax rate, eliminate Backdoor Roth IRA, cancel 1031 exchanges, tax unrealized gains, and remove step-up cost basis. What are your thoughts on his 2025 budget proposal?
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⏰ Table of Contents ⏰
0:00 Biden’s 2025 Budget Proposal
1:25 Removing Backdoor Roth IRA
4:23 Raising Capital Gains
7:01 Taxing Unrealized Gains
10:00 Raising Income Tax
11:30 Removing Step-Up Cost Basis
14:53 Eliminating 1031 Exchange
#FIREPsyChat #FinancialIndependence #taxes
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President Joe Biden recently unveiled his massive plan to raise taxes in 2025 in an effort to fund his ambitious agenda aimed at revitalizing the economy and addressing key issues such as climate change, healthcare, and education. The plan, which has faced criticism from Republicans and some members of the business community, is part of Biden’s broader strategy to rebuild the economy and create a fairer society.
One of the key pillars of Biden’s tax plan is an increase in the top individual income tax rate from the current 37% to 39.6% for those earning more than $400,000 a year. This tax hike is aimed at ensuring that the wealthiest Americans pay their fair share and help offset the cost of Biden’s proposed investments in infrastructure, renewable energy, and social programs.
Additionally, Biden’s plan includes raising taxes on capital gains and dividends for individuals making over $1 million a year. This measure is intended to address the widening wealth gap in the country and ensure that investment income is taxed at a similar rate as regular income.
Another significant component of Biden’s tax plan is the closure of tax loopholes that allow corporations to avoid paying their fair share. Biden has proposed raising the corporate tax rate from 21% to 28% and instituting a global minimum tax of 15% on multinational corporations. These measures are expected to generate billions of dollars in revenue and reduce incentives for companies to shift profits overseas.
While Biden’s tax plan has drawn praise from progressives and some Democrats, it has faced pushback from Republicans who argue that raising taxes will harm the economy and discourage investment. Some business leaders have also expressed concerns about the potential impact of higher taxes on their bottom line and competitiveness.
Despite the criticism, Biden remains steadfast in his commitment to implementing his tax plan in 2025. The President believes that the benefits of his proposed investments in infrastructure, clean energy, and social programs will far outweigh any temporary economic disruptions caused by tax increases.
In conclusion, Joe Biden’s massive plan to raise taxes in 2025 is a bold and ambitious move aimed at addressing key social and economic challenges facing the country. While the plan has faced criticism from some quarters, Biden is confident that it will help build a more equitable and resilient economy that works for all Americans.
My thought is joe has got to go. Stop government greed now. Joe complains about corporate greed but at least i have a choice whether i want to purchase thst corporate product or not. With government greed i have no choice. Joe has got to go!
I hate Trump! He is absolutely the worst President I ever voted for. He is definitely not good for this country. But the worst of two evils is easy for me to see. I will vote with my pocket book all day every day with this kind of crazy stuff. Great job FIRE Psy Chat on the recap of the crap being proposed again.
Most of this isn't worth worrying about for most folks. Even though this remains true for the unrealized gains aspect, it nevertheless baffles me. Unrealized gains basically don't exist until you make them real by selling the asset. It's a moving target. I assume they'd do an annualized average of the gains or losses in that year, but if you tax someone on unreal money in a year that returned 25% and then the market halves the next year, and the investor now has less unrealized money than they had 2 years ago, do they get a refund? Then what happens when they actually do pull the money out? Are they then taxed yet again on that money? Rich people are going to need to refocus on bonds and dividends because growth investing will be dead for them.
Biden and dems need as much money to buy illegal voters, they didn't import 10-20million illegals in 4 years for nothing
Biden is heading out the backdoor with his side chick.
We have been converting ~$3.5M annually since 2020 from IRAs to the ROTH, and about a dozen of our clients can only fund their ROTHs via back door. Glad we saw the writing on the wall years ago and for many of our clients, well have fully converted them while staying in the 12% bracket by the end of 2025. Hoping to see the TCJA ‘17 get extended but I highly doubt it
What astonishes me, is that Wall Street donates millions to Biden and other Democrat politicians. In return Biden wants to raise their taxes. Why do Wall Street keep doing it?
How can a president do that unilaterally? It has to go via congress. It’s a proposal. It won’t pass
Reduced spending is the only actual solution. Everything else is inefficient govt collecting money from us all. The govt does not care, especially Biden.
Whenever a government starts to "tax the rich" more and more, it inevitably becomes tax everyone that isn't rich enough to leave the country or pay off the government more and more.
This is why we need to make our millions now and push all these cryptos too the moon because make no mistake about it trump will not win deep state will not allow that to happen
This guy is full of himself and something else as well
He won't be president in 2025. Open border. High taxes. Weak on crime. People really don't like our countries situation under the Democratic party.
This is crazy absolutely crazy..
What do expect from a communist puppet?
Although you may not make 400,000 a year you may not have ever had to go without food or health care. Give wealthy even more while in turn hurting lower income individuals seems wrong.
500 @10% vs 1000 @7% time makes all the difference
Over 20 1000 wins
Over 40 and longer 500 wins.
I'm all for these changes. It seems like the plan is to close a lot of loopholes that the wealthy exploit. That's good imo.