#tax proposal

[epitome-the-burnkid-viii]

[xtruss]

All Eyes on the US Election: Tax Proposal Client Planning Alert

The upcoming US presidential election is generating tremendous public interest, as the US electorate and the world evaluate the policies proposed by each candidate. This election, taxes are an especially relevant topic, as many of the provisions of the Tax Cuts and Jobs Act are scheduled to expire soon. Each candidate has announced particular reforms that they would seek to implement if they become President, many of which will have implications for the US income tax and US estate tax. Yet with the deluge of election coverage, it's easy to get lost searching for each candidate's proposals.

Because we know taxes are an important topic for many of our clients, and since tax planning is a core piece of every individual financial plan, we have summarized the proposed tax reforms announced by each of the two major candidates for United States President. This article highlights key US income tax and US estate tax proposals by each candidate based on our current understanding of their stated positions, and discusses how individuals can best plan in an environment of uncertainty. As always, clients should consult their individual legal and tax advisors before undertaking any planning strategy.

What the Candidates Agree On

Both candidates have indicated they would end the taxation of tips on restaurant and hospitality workers. According to the Tax Foundation, for tax year 2018 approximately 6.1 million taxpayers reported a total of $38.3 billion in taxable tip income.

Both candidates have indicated they would expand the child tax credit, but would do so in different ways.

Ms. Harris has proposed a plan which would expand the tax credit to $6,000 for children under the age of 1, $3,600 for children ages 2 through 5, and $3,000 for older children. Mr. Trump has proposed a plan which would expand the child tax credit to $5,000 per child, and would apply at all income levels without a phase-out for higher earners.

Tax Reform Proposals By Donald Trump

Mr. Trump has indicated he would make permanent the tax cuts enacted under the Tax Cuts and Jobs Act of 2017. This would include making permanent the doubling of the standard deduction, and various changes to itemized deductions, including the $10,000 cap on state and local tax, the mortgage interest deduction cap, and the elimination of miscellaneous personal itemized deductions such as investment fees and union dues. It would also make permanent the expanded unified credit, which is approximately $13.6 million for tax year 2024 (indexed annually for inflation), and which is currently scheduled to "sunset" on January 1, 2026 to its pre-2017 levels (which will be one-half the current levels, indexed annually for inflation).

Mr. Trump has also indicated he would lower the corporate tax rate from 21% to 20%, and he would further lower the corporate tax rate to 15% for companies that make their products in the United States.

Mr. Trump has indicated he would eliminate taxes on Social Security benefits. Under current law, individuals drawing Social Security benefits are required to pay taxes on 50-85% of their benefits, depending on their income level.

Mr. Trump has indicated he would impose baseline tariffs on all foreign-made goods imported into the US, and in public statements has indicated that the level of the tariffs could be approximately 10-20%.

Tax Reform Proposals By Kamala Harris

Ms. Harris has proposed increasing the maximum tax rate for long-term capital gains to 28% for taxable income in excess of $1 million per year. Currently, the maximum tax rate for long-term capital gains is 20%.

Ms. Harris has also proposed raising the maximum Net

Investment Income Tax (NIIT) to 5% on income in excess of $400,000 (currently the rate is 3.8%, but potentially applies after $200,000 for single filers and $250,000 for married filers).

Ms. Harris has proposed raising the corporate tax rate to 28%, which is higher than the current rate of 21%, but would be less than the rate of 35% which existed prior to the enactment of the TCJA.

Ms. Harris has proposed raising the excise tax on stock buybacks. Under current law, the excise tax is 1%, and Ms. Harris has proposed raising the excess tax to 4%.

Ms. Harris has indicated she would extend the tax breaks under the TCJA as they relate to individuals earning less than $400,000 per year. The implication of this is she may not extend these tax breaks to wealthier individuals, including the expanded unified credit for the US estate tax and generation-skipping transfer tax, and instead would allow the temporary expansion to sunset on January 1, 2026.

Ms. Harris has proposed increasing the business deduction for startups to $50,000. Under current law, the tax deduction is $5,000. She has also proposed providing 400,000 first-generation homebuyers with $25,000 in down payment assistance and a $10,000 tax credit for other first-time homebuyers. It is not yet known how the down payment assistance would be implemented, but some tax policy experts suggest it could be in the form of a tax credit.

What Individuals Can Do Now

Whether any of these proposals ultimately become law depends on the priorities of the elected candidate and whether a bill reflecting such priorities can be enacted. In some cases, such as the Tax Cuts and Jobs Act (TCJA), parts of which is scheduled to sunset at the end of 2025, the timing of legislation is critical: if nothing occurs before January 1, 2026, the tax brackets and rates will return to their pre-TCJA levels.

For individuals who would be directly impacted by the halving of the federal unified credit, time is of the essence to lock in the current available credit at its historical high. For others, it may be a good time to speak with an HSBC Relationship Manager about strategies to help mitigate future tax exposure, such as realizing gains in advance of a possible increase in the capital gains tax rate. In all cases, having a comprehensive plan in place is incredibly important, and it is equally important to have older plans reviewed periodically to ensure that they are still well suited to the family's current goals. Families who have not yet put together an estate plan are encouraged to meet with estate planning advisors soon to ensure that their wealth planning goals have been considered and drafted into a Last Will and Testament, estate planning trusts, and/or other legal documents.

At HSBC, our team is dedicated to assisting clients on the full breath of wealth management topics, including comprehensive financial planning and optimization in keeping with your goals. We can discuss these developments with you and discuss any opportunities for thoughtful, proactive planning done in conjunction with your personal legal and tax advisors. If you would like to learn more, please reach out to your Relationship Manager to inquire further.

— Important Notice:

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[miliamin1]

A Marriage That's Unlike Her Parents'

Enid taps a melody on the driving wheel on their way to a grocery store. Despite the late evening the werewolf kept her joyful energy. Even when technically doing a chore. Wednesday doesn’t know if it’s because of the music playing or because they’re doing it together. 

It could go both ways really. 

Wednesday tries her damndest to not pay attention to the inane lyrics but them being in English for once and Enid singing them interrupts that. 

“Don't you go fallin' in love. 'Cause I'ma break that shit up. I won't let her. Love you like I do. Touch you like I do. Nothing like I do~”

Wednesday stopped questioning why sometimes Enid randomly plays songs in English or Spanish amidst the drowning of Korean years ago. Fully knowing that Wednesday only tolerates her song choices when she’s spared understanding of the copy pasted lyrics. At first the she-wolf wouldn’t comprehend that she was doing it, not realizing the language switch since somehow it was still Korean pop. 

Somehow.

It is better not to ponder over it much.

She can dredge an occasional mishap. Smidgen of English during the chorus is technically part of the Korean pop staple so even when singing English it can be a forgiven mistake.

“Wens, can you check what’s the title? I swear it’s on the back of my tongue but I can’t get it and it’s so irritating.”

Wednesday picks up the pink cased phone and turns the screen on. “By brackets capital G end of brackets, capital I, hyphen, D L E capitalized too and the song title is ‘I Do’-”

When Enid hits the manual brakes and swerves the car, performing a drift to a stop on the side of the road, Wednesday realizes the trap that ensnared her. She sighs deeply. 

Enid doesn’t react to the exasperated look and takes off her ring, then Wednesday’s, and then holds them between their joined hands. “By the power vested in me by the State of New Jersey-” she cheerfully starts.

“Enid, our latest divorce papers did not even go through.”

“-shush, I pronounce us wife and wife.” Enid puts a ring on Wednesday’s finger.

“You didn’t even propose this time.” Wednesday rolls her eyes and does the same.

“You were adorable and asleep and sleep talked a yes. You may kiss the bride.” 

Wednesday kisses the smiling lips. “Did you even really crave your favorite ice cream we can only get in one store?”

Enid giggles as she backs up the car.

“Of course amorcita, how else would I celebrate my seventeenth wedding?”

[eats-the-stars]

hate my sister's shitty good for nothing boyfriend. can you imagine being a 30yo man with two kids who won't even scramble an egg. Not for his kids, not for his girlfriend, not for himself. literally if my sister doesn't leave out pre-made meals when he's watching the kids he will rip up bread or pour them dry cereal or open a granola bar and make himself microwave dinners. like, lowest effort possible. but if i mention this to my sis, she'll be like "no he's definitely cooked for the kids! he scrambled an egg for them once! i watched him do it!" but it's like...so he scrambled one egg in the last five years. just to like, prove he can? at your direct insistence? should we all clap? like seriously. hate this guy. had to really hold back recently because he had someone over and he was interacting with the kids more than usual for appearances, and he had to keep asking me and my sis what the 5yo was signing because he barely bothered to learn his own son's primary form of communication. i was so tempted to say "that one means 'go home' but you wouldn't know that because you don't take them anywhere." so hard to hold that in. If I had to describe this man in two words they would be these: Low Effort. Not quite bare minimum, but JUST enough to convince my sister that it would be too much hassle to get rid of him. he's stupid as fuck, but just smart enough to quickly stop shit like screaming obscenities at the kids for doing normal kid things. and he once stomped on my headphones and broke them in a fit of rage, but gave my sister money to replace them so it was "fine." Like, my sister thinks that he's just struggling with his anger issues, because he had a bad childhood, blah, blah, and oh he would never actually hurt her or the kids. and like, good for you, but i don't trust like that. genuinely hoping he gets struck by lightning and dies instantly.

[kominfyrirkattarnef]

Jesus. Relevant to probably nobody but I’m reading War and Peace and wanted to know the translation of those 43 thousand roubles. A fucking 100,000,000 isk. Holy shit bro. HOW do you keep gambling that long??

[dxsole]

Zachary stood on the rooftop, the moon casting a silvery glow over the city below. He adjusted the flickering candles on the table, their warm light flickering in the cool night air. Tonight had to be perfect. It’s why he booked this place, somewhere fancy. Somewhere private.

As he glanced at Jasper leaning against the railing, a rush of warmth flooded through him. Jasper’s relaxed smile illuminated his face, and in that moment, Zachary felt a happiness he never thought possible.

“Hey,” Zachary managed, his heart racing. He stepped closer, the velvet box hidden in his pocket weighing heavily as he took a deep breath. “There’s something important I want to ask you.”

His voice trembled with the gravity of the moment. “Jas, you’ve shown me a joy I didn’t know existed. I used to wake up with so much dread, so alone. I was so scared. And then you walked into my life and that magnificent brain of yours was so desperate to figure me out. Never in a million years would did I think that some nosy scientist turned librarian would turn my world upside down, and actually make it worth living… I can’t imagine my life without you.” He knelt down, opening the box to reveal the ring nestled inside. “Jasper Despereaux. Will you marry me?”

💍 IT'S BEEN 8 YEARS | Always Accepting Random Asks!

Everything looks so small from up here. So insignificant. For so long he's been afraid of...he's not even sure. Once released, being in that house of his had felt empty. Haunted. And terribly cold above all.

He didn't want anyone to see what became of him, how he left both the house and himself fall into disrepair, hiding the cracks in the walls with heavy drapes and hiding himself away in the soothing dark of his wine cellar, using what little was left of his wit to drive others away, no matter their intentions.

Except Zachary. It may have been his own blunt curiosity that got them talking, but it was Zachary's warmth, something the younger tended to deny even having at the start, that kept Jasper from retreating into the shadows once more.

It's why he can smile now, even when nothing seemed to cause it.

It's also why when Zachary grabs his attention with something important to discuss, his smile remains; at this point, there was very little the pair hadn't overcome. Whatever Zachary was going to say just piqued his curiosity once more, just as it had all those years ago.

It didn't help that poor Zachary looked ready to combust. He starts, voice wavering despite saying such beautiful words and it's about the time he says walked into my life that Jasper understands what's happening; he should have known sooner, honestly. He's been on Zachary's side of things once before, and he had been a wreck. And he hadn't even done the whole on one knee thing.

Jasper has to force his smile from widening too much for fear of laughing at the thought that being on the receiving end of a proposal is much less stressful. Or maybe it just feels that way since he would have said yes to Zachary no matter how he asked.

Although, he did outdo himself. And to do so with that tiny world below them, the pair elevated nearly amongst the clouds— there's poetry in there somewhere, something Zachary and his lyrical talents could explain far better than Jasper ever could, even if he feels it welling up in his chest.

Hand covers the stupid grin that spreads across his features, Jasper unable to hold it back any longer. "You can get off your knee, hm. I can say yes to you at eye level, mon couer." Hand is offered, the elder grunting softly as he helped him up.

"You got me a ring," He comments softly, the pair now in one another's space, noses nearly touching. "I didn't...I did not think I would be allowed to be so happy again. And certainly not end up with someone to love as well."

She'd be happy for him. For once he can feel it, like letting go wasn't such a terrible thing. He always thought starting a new chapter was something for other people, but not him— until today, that is. "Zachary Key," He starts, cradling his love's cheeks, "...my husband."

[confused-disaster32]

"Oh I'll learn choreo from smth with u!/I'll listen to u rant about ur interests!/I'll watch ur fav piece of media with u!" Um okay, we're now officially married - are you aware of that?

[gil-estel]

why is it that buck gets into a relationship and immediate starts questioning his own self-worth???? I thought the whole point of the coma dream was that he understood that all he needed to be was buck?????

[departed-pronouns]

Okay, okay so we've seen at least one of Eddie's dates right? We've seen that Pepa sets him up and he doesn't really want to do it. Cause, what from that one scene we find out he took a lady somewhere to let her down easy? Can I put it out into the universe. I wanna see Eddie Diaz be a more active person. We've gotten a little taste of it with him following his heart and being a fire fighter again. But mostly we've seen Eddie be told what he should do and what he should want. And it's old now. We've seen everyone telling Eddie that he needs to get out there and date after Shannon died. We saw his family telling him he needed to go back to Texas to do right by Chris. We saw him trying to get back with Shannon when she came into his life because that's what he was told he should do. Give Chris a mom, be a good husband, settle down.

Fuck sakes Buck had to tell Eddie to break up with Anna! Eddie wasn't going to do it without a push. And the whole quitting fire fighting thing happened because Chris said he was scared and Eddie was like 'someone told me something, I have to do what they want - or what he thought they wanted.' And wasn't it Bobby who had Eddie go to therapy first before letting him back with the 118? . . . or was it the break down that made him realize he had to do therapy? I dunno I feel someone told him he had to do therapy or he would never.

I just . . . okay, since I don't believe buddie will go canon thanks to Kristin who is now in the driver's seat, I'll be pleasantly surprised if my ship ever sailed - so the obligatory buddie mention out of the way. I just really need to see Eddie doing things he wants. Does he not want a girl friend? Great! Let's see Eddie being single and happy and telling people when they say 'you should do this or that' "No, I'm doing this instead and am quite happy."

Can I just get a little more screen time on Eddie and see him actively making choices and doing things? Without people telling him what to do? Honestly been there enough in real life myself with being told how I should live my life so maybe I'm projecting a little but god dang.

[kresnikcest]

Yeah boy Victor mistaking adult!violet!Elle for Lara I am always down for whatever the hell this is 😌

[bookwyrminspiration]

got around to reading your secret santa fic and i think it permanently changed my brain chemistry

I saw your comment!! I haven't responded to it because it's january 1st and that means it's Twilight Time, but I loved your reaction and will admit. I was very curious to see what you thought because I associate tiertice with you a fair amount

I'm so glad someone else pointed out the Tiergan obliviousness because I kept laughing when I wrote those moments. Tiergan's like I don't know what's going on between us when they're in gay love and raising four children. you're dreaming about each other, sir. they're so scrunkly !!

and then the kids!! i may have a bit of a fondness for found sibling relationships and there is just. SO much opportunity in the solreef family. they all have such strong personalities that you wouldn't think would mesh, but they do. the Linh and Rayni comparison was one of my favorites, the way they're both right. Rayni made the decision that saved her, but so did Linh. Even if it put them on opposite sides for a while. The acknowledgement of circumstance and luck. And then Wylie and Tam with the more established camaraderie that's got the unspoken question in it. It's easy to care about each other but still just as intense and I. Adore it. I am partial to Tam but still

thank you for the compliments and for reading, I am. very glad the fic has been well received because I am aro and not really interested in romance. so writing something pretty romantic and with a proposal--I know there was more to the fic and that marriage isn't inherently romantic, but it was romantic in this case--was a little nerve wracking. not something I'd usually write, but there's also a lot more going on so there's a nice mix :)

[junadeo]

YES!!

decriminalize:

sex work

addiction

criminalize: 

golf

[morganablenewsmedia]

Tax Reform Bill: Northern Senators Seek Suspension

Tax Reform Bill: Northern senators seek suspension as it passed the second reading Various Senators from the Northern part of Nigeria have sought the suspension on the controversial Tax Reform Bills which has recently passed the second reading. The move was made on Monday amidst a meeting, highlighting possible adverse effects it might have on the North. It can be recalled that the members of the…

[bitcoinversus]

Italy Lowers Proposed Crypto Tax Rate to 28% After Industry Feedback

Italy’s government has decided to reduce the proposed capital gains tax on cryptocurrency transactions from 42% to 28%, following significant feedback from industry stakeholders and political figures. The initial proposal, introduced in October 2024, aimed to increase the tax rate from the existing 26% to 42%, sparking widespread concern among investors and businesses within the cryptocurrency…

[stonebasalt]

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