Biden's Tax Plan Calculator
Calculate how President Biden's proposed tax changes would affect your federal tax liability. This calculator shows the potential impact of proposed capital gains tax increases and other tax policy changes.
Tax Comparison
Capital Gains Impact
Effective Tax Rates
Understanding Biden's Tax Proposals
President Biden's tax proposals aim to increase revenue for social programs and infrastructure while making the tax code more progressive. The plan includes significant changes to capital gains taxation, corporate tax rates, and individual tax brackets.
Key Biden Tax Proposals
Capital Gains Tax Changes
- Long-term capital gains taxed at ordinary income rates for high earners
- 3.8% Net Investment Income Tax (NIIT) remains
- Stepped-up basis at death would be eliminated
- Carried interest taxed as ordinary income
Individual Tax Changes
- Top marginal rate increased to 39.6%
- Additional 5% surtax on incomes over $10 million
- Capital gains taxed at ordinary rates above $1 million
- Expanded Earned Income Tax Credit
Corporate Tax Changes
- Corporate tax rate increased to 28%
- 21% rate for manufacturing companies
- Global minimum tax of 21%
- Book minimum tax added
Other Provisions
- $400 billion in IRS funding for enforcement
- Expanded child tax credit
- Free community college
- Electric vehicle tax credits
Capital Gains Tax Proposals
| Income Level | Current Law | Biden Proposal | Tax Increase |
|---|---|---|---|
| $0 - $47,025 | 0% | 0% | $0 |
| $47,026 - $518,900 | 15% | 15% | $0 |
| $518,901 - $1,000,000 | 20% | 20% | $0 |
| $1,000,001+ | 20% | 39.6% | +19.6% |
Individual Income Tax Changes
| Taxable Income | Current Rate | Biden Proposed Rate |
|---|---|---|
| $0 - $11,000 | 10% | 10% |
| $11,001 - $44,725 | 12% | 12% |
| $44,726 - $95,375 | 22% | 22% |
| $95,376 - $182,100 | 24% | 24% |
| $182,101 - $231,250 | 32% | 32% |
| $231,251 - $578,125 | 35% | 35% |
| $578,126 - $1,000,000 | 37% | 37% |
| $1,000,001+ | 37% | 39.6% |
Who Would Be Affected?
Most Affected Groups
- High-Income Investors: Capital gains taxed at higher rates
- Business Owners: Increased corporate and pass-through taxes
- Hedge Fund Managers: Carried interest taxed as ordinary income
- Real Estate Investors: Loss of stepped-up basis
Potential Benefits
- Lower-Income Workers: Expanded EITC and child tax credits
- Students: Free community college
- Families: Enhanced child tax benefits
- EV Owners: Expanded tax credits
Implementation Status
As of 2024, many of Biden's tax proposals remain proposals and have not been enacted into law. Some provisions may require Congressional approval, while others could be implemented through regulatory changes. The actual impact depends on final legislation.
Build Back Better
Original $2.3T plan
Partially passed
Inflation Reduction Act
$739B passed
2022
Remaining Proposals
Under consideration
2024+
Tax Planning Strategies
Pre-Implementation Planning
- Accelerate capital gains realization before rate increases
- Consider Roth conversions for qualified accounts
- Review estate planning to minimize stepped-up basis loss
- Maximize charitable giving while rates are lower
Ongoing Strategies
- Diversify income sources to stay in lower brackets
- Utilize tax-advantaged accounts (401k, IRA)
- Consider tax-loss harvesting
- Review withholding to avoid underpayment penalties
Important Considerations
- Tax proposals are subject to change and may not be enacted
- State taxes are not included in federal tax calculations
- Individual circumstances vary - consult a tax professional
- Some provisions may have delayed effective dates
- Inflation adjustments may affect tax brackets annually
- Tax planning should consider both current and potential future rates