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Trump vs. Biden – How The Election Will Affect Your Tax Bill! - YouTube
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so as the election heats up and read
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read more about
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trump and biden how will that affect
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you and your income tax bill
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hi my name is chris passmore with cpa
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corner
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and we're going to talk about that more
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today so it seems like
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the debate between biden and trump has
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been
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main news now for weeks and will
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continue to be as we go through the
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election in november
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but what i want to talk about today
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specifically is the impact on you
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and your individual income taxes so i'm
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going to highlight
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four different key items that will
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potentially impact you
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and your income tax bill each year
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whether you're a
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buying supporter or a trump supporter i
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do want to highlight this is for you on
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an
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individual level this does not highlight
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business taxes
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that will be addressed in a different
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video i mean one key highlight i do know
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is that the
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current corporate tax rate under
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president trump
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is 21 and uh candidate joe biden wants
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to increase that to 28
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that is at a business level uh we'll
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talk about that separately today is just
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talking about you
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and an individual level for you and your
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family
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so let's kick this off so the first
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thing i want to talk about is the top
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marginal rate that you would pay as an
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individual
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under the tcja the
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new tax regulations that president
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trump's administration rolled out a few
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years ago
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the top marginal tax rate that
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can be paid is 37
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and the trump administration is
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suggesting that they will retain that
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amount
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that top marginal rate at 37 and they
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also want to roll out
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a cut of 10
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for middle market or middle income
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taxpayers they haven't defined exactly
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who qualifies
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or what income level will qualify for
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that 10
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tax cut but they did say they want to
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roll out and reduce 10 for
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middle and low-income families you
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compare that to
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candidate biden and he has stated
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fairly clearly that he expects
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any taxpayer with income of 400
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000 or less to have no change in taxes
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and
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so he is suggesting that that would stay
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the same as it is today
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his change is for those over 400
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000 for individuals or roughly 510 000
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for
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couples filed jointly married couples
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filing drilling
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and for those people at that high income
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level
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the tax rate would increase from 37
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to 39.6
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so a 2.6 increase for those
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high income families this is actually
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the rate that was in place
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before the tcgaa was rolled out by the
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trump administration a few years ago
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so the second key item i want to talk
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about today
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is the capital gains rate
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so if you're not familiar capital gains
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is basically the tax you pay on
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investments
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whether that's stock or other real
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estate
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and that is a beneficial tax rate that
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you pay on those gains
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currently the top capital gains rate you
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can pay
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under the trump administration as a
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result of the tcga is 20
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and he has suggested he wants to
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decrease that amount but he has not
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shared specific details so the trump
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administration
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has said that they want to continue to
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have this 20
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rate in place if you don't know many of
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the
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provisions of the tcga only
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were effective through the year 2025.
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so his candidacy his program is to
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extend that past the 2025 time frame
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to give that rate available for a longer
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period
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now let's compare that to candidate
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buying
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candidate biden has had a significant
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change in the capital gains rate
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but it's only for incomes in excess of a
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million dollars
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he's proposing for those high level
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amounts
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that the preferential or the discounted
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tax rate
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for capital gains the 20 percent
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be eliminated and instead those amounts
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would be subject to a tax
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equal to the ordinary income
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income tax level for those individuals
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so as i mentioned in the first bullet
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point
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for those high income families
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that would be 39.6 percent that's the
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ordinary amount so that would be an
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increase
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from the current amount at capital gains
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at 20 percent
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for some high income families to 39.6
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so you can see that that is almost a
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double of the amount that we currently
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have in place
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the third key item i want to talk about
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is
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the amount of deductions the standard
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deductions are the itemized deductions
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for you and your family
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currently under the trump administration
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as a result of the tcja
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the standard tax deduction
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was increased and right now that amount
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is
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24 800 for married couples
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filing jointly the trump administration
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has proposed that they want to
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keep that standard deduction in place
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extend that
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past 2025 when it was originally slated
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to expire
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and to give everyone the benefit of that
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higher standard deduction
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now candidate biden has a different
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approach
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and he actually wants to impose a limit
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on
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itemized deductions and the limit he is
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proposing is that no itemized deduction
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will provide a tax benefit greater than
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28
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so what does that mean that means if you
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have one dollar
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of itemized deductions the maximum
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tax benefit would be 28 cents
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so he's capping the amount of itemized
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tax deductions
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that you may not have had previously
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and so the last and the final item i
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want to talk about is there's a number
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of various tax credits in different
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positions but the one i think is most
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important is the child tax credit
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under the trump administration and the
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tcga
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the current ctc the child tax credit
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is two thousand dollars and the trump
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administration
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as i've noted before wants to extend
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that benefit
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past the year 2025 as currently stated
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in the law this is another significant
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change
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under candidate biden he wants to
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increase the
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child tax credit for low and
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middle income families to eight thousand
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dollars
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for the first child or up to sixteen
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thousand dollars for
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families with multiple children wouldn't
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matter if you have two kids three kids
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or four kids
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the maximum amount would be sixteen
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thousand dollars but again this is
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another
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big divergence between the trump
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administration at two thousand dollars
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and the potential biden administration
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at
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sixteen thousand dollars so you can see
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there is
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some significant differences between the
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two candidates
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i'm not going to speak to the politics
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that's for you to decide whether you
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like
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president trump or if you lean more
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towards candidate biden that
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is for you to choose on the other
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politics but this way at least you know
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the economic impact to you and your
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family and so you can make a educated
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decision when it comes to election time
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in november i'll highlight all of these
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points
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in the comments below and if you have
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any questions further
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about how the election will affect your
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income taxes
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please feel free to send me a direct
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message
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and i'll get back to you thank you so
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much
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and i look forward to speaking with you
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in my next video
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you
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