How the Build Back Better Act gives high earners a one-year tax cut

Nancy Pelosi, Speaker of the US House of Representatives, talks about the Building Back Better Act during her weekly press conference on Capitol Hill in Washington, DC, on November 18, 2021. Jim Watson | AFP | Getty Images The nearly $2 trillion climate and social policy measure passed by House Democrats on Friday would create … Read more

Democrats put 401(k) and IRA restrictions back into Build Back Better

Michael Godick | moment | Getty Images House Democrats have proposed several rules to limit the retirement accounts of the wealthy, part of a broad restructuring of the tax code tied to the party’s social and climate spending package. Wealthy individuals with more than $10 million in retirement savings will have to withdraw their accounts … Read more

SALT reprieve still possible as Democrats hone spending bill

Representative Josh Gottheimer, DNJ, speaks during a press conference with the Problem Solving Conference on December 3, 2020. Stephanie Reynolds | Bloomberg | Getty Images While Democrats prepare their $1.75 trillion social and climate spending package, the plan may still include relaxing the $10,000 cap on the federal deduction for state and local taxes, known … Read more

Democrats might not touch these taxes. But they’re going up anyway

Tasos Katopodes | Getty Images News | Getty Images Democrats have abandoned a number of proposals to raise taxes on the wealthy in a measure of social and climate spending of $1.75 trillion. But those taxes will rise even if lawmakers do not touch them. Starting in 2026, the marginal income tax rate paid by … Read more

Tax strategy of the rich, backdoor Roth survives in latest Democrat plan

Bill Koblitz | moment | Getty Images The retirement tax strategy favored by the wealthy has survived in the Democrats’ latest Social and Climate Expenditure Plan, after an earlier version of it was in severance. So-called Roth back-end strategies are a way for the wealthy to avoid the income and savings limits that apply to … Read more

Biden discusses $1.75 trillion social spending framework

[The stream is slated to start at 11:15 a.m. ET. Please refresh the page if you do not see a player above at that time.] President Joe Biden is set to deliver a speech detailing the recently unveiled framework for his $1.75 trillion social spending and climate plan and next steps in the legislative process, … Read more

What a new plan in Congress would mean for benefits

zimetos | iStock | Getty Images House Democrats are reintroducing a Social Security reform bill popular with their party. This time, it features some changes aimed at attracting more support from Republicans. The bill, known as Social Security Act 2100, was introduced by Representative John Larson, Democrat of Connection, chair of the House Social Security … Read more

Here’s why Dems’ proposed elimination of Roth conversions for wealthy doesn’t start until 2032

Photo by Mike Klein (@notkalvin) | moment | Getty Images House Democrats have proposed a rule barring Roth’s transfer to the wealthy as part of a wide range of tax increases on wealthy Americans. But there is a paradox in the proposal, according to tax experts. A Roth transfer is a mechanism that allows taxpayers … Read more