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Wealthy investors may be in for a capital gains tax hike. Here’s how they’ll manage

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Wealthy investors may be in for a capital gains tax hike. Here’s how they’ll manage


President Joe Biden addresses a joint session of Congress at the US Capitol in Washington, DC, on April 28, 2021.

Chip Somodevilla | AFP | Getty Images

The future of President Joe Biden’s proposal to raise capital gains on the wealthiest households is uncertain, but accountants are weighing strategies to help mitigate the tax bite.

To help fund his $1.8 trillion American Families Plan – a new stimulus proposal that includes enhanced tax credits for families – Biden is calling for higher levies on capital gains and income for top earners.

He’d like to raise the top rate on income taxes from 37% to 39.6%.

Further, Biden is proposing a hike to the long-term capital gains rate to 39.6%. Currently, the top rate on those gains is 20%. The increase would apply to households making over $1 million.

Accountants don’t anticipate a wave of panic selling out of taxable accounts, but they say it’s a good time to think about tax strategies.

“People hear ‘tax rate increase’ and start doing things they otherwise wouldn’t do,” said Tim Steffen, CPA and advisor education senior consultant at Pimco.

“Rarely are investment decisions based on one factor alone,” he said. “Be sensitive, but not driven by taxes.”

Here are four tax mitigation strategies to consider in a time of higher rates.



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U.S. lawmakers want GM to answer questions about Mexican labor dispute By Reuters

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U.S. lawmakers want GM to answer questions about Mexican labor dispute By Reuters



© Reuters. FILE PHOTO: The new GM logo is seen on the facade of the General Motors headquarters in Detroit, Michigan, U.S., March 16, 2021. REUTERS/Rebecca Cook

(Reuters) – Three senior U.S. House of Representatives lawmakers on Tuesday asked General Motors Co (NYSE:) to answer questions about reported labor rights violations at its Silao, Mexico, plant and to remain neutral in any future union efforts by Mexican workers.

Representatives Dan Kildee, Bill Pascrell and Earl Blumenauer said in a letter to GM Chief Executive Mary Barra that the largest U.S. automaker “has a responsibility to speak out against violations of labor and human rights abuses at the Silao GM plant, and has an overarching responsibility to ensure that workers at its facilities throughout Mexico who exercise their rights in the workplace do so free from threats or retaliation.” GM did not immediately comment.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





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‘Rationals’ vs. ‘radicals’: Anti-Trump Republicans threaten third party By Reuters

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‘Rationals’ vs. ‘radicals’: Anti-Trump Republicans threaten third party By Reuters



© Reuters. FILE PHOTO: Third party candidate Evan McMullin, an independent, talks to the press as he campaigns in Salt Lake City, Utah, October 12, 2016. REUTERS/George Frey/File Photo

By Tim Reid

WASHINGTON (Reuters) – Over 100 former Republican officials will sign a letter on Thursday declaring that if the Republican Party does not break with former President Donald Trump and change course, they will back the creation of a third party.

The letter, headlined: “A Call For American Renewal,” is an exploratory move toward forming a breakaway party, two of its organizers said. The group is dismayed by what it says is a modern Republican Party driven by its allegiance to Trump, who continues to falsely claim the 2020 election was stolen from him.

“The Republican Party is broken. It’s time for a resistance of the ‘rationals’ against the ‘radicals,'” said Miles Taylor, one of the organizers. Taylor, while serving in the Trump White House, wrote an anonymous opinion piece in the New York Times in 2018 headlined: “I Am Part of the Resistance Inside the Trump Administration.”

The group first raised the threat in February https://www.reuters.com/article/us-usa-trump-party-exclusive/exclusive-dozens-of-former-republican-officials-in-talks-to-form-anti-trump-third-party-idUSKBN2AB07P, following the deadly Jan. 6 attack on the U.S. Capitol by Trump supporters to try to disrupt congressional certification of Democrat Joe Biden’s presidential election victory.

The letter highlights the wide intraparty rift over Trump.

Most Republicans remain fiercely loyal to the former president.

House Republicans are expected on Wednesday https://www.reuters.com/world/us/top-house-republican-says-he-will-back-stefanik-not-trump-critic-cheney-2021-05-09 to oust Representative Liz Cheney from her No. 3 party leadership position within the chamber, because of her refusal to embrace Trump’s election claims and her move to back Trump’s second impeachment after the Capitol riot.

The letter signatories, who include former ambassadors, governors, congressional members and Cabinet secretaries, want the Republican Party to return to “principled” leadership and reject division and conspiracy theories, or face a new party dedicated to fighting for Republicans such as Cheney and against fearmongering and lies.

Backers of the reform group include former Republican Governors Tom Ridge, Christine Todd Whitman, George W. Bush-era Transportation Secretary Mary Peters and former House members Charlie Dent, Barbara Comstock, Reid Ribble and Mickey Edwards.

They may face an uphill battle in getting any current Republican officeholders to sign on – including Cheney herself, who in February rejected the idea of a third party, saying it would empower Democrats.

A spokesman for Trump, Jason Miller, said: “These losers left the Republican Party when they voted for Joe Biden.”

Evan McMullin, a former chief policy director for the House Republican Conference and an independent presidential candidate in 2016, said if the Republican Party does not reject lies and extremism, part of it “will have no choice but to part ways with it and build something new. We’re excited about that prospect.”

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





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U.S. judge dismisses NRA bankruptcy in victory for New York By Reuters

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U.S. judge dismisses NRA bankruptcy in victory for New York By Reuters


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© Reuters. FILE PHOTO: A man inspects a handgun inside of the Beretta booth during the National Rifle Association (NRA) annual meeting in Indianapolis, Indiana, U.S., April 28, 2019. REUTERS/Lucas Jackson/File Photo

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(Reuters) -The National Rifle Association cannot use bankruptcy to reorganize in gun-friendly Texas, a federal judge in Dallas ruled on Tuesday, handing a defeat to the influential firearms rights group that is facing an effort to dissolve it in New York state.

U.S. Bankruptcy Judge Harlin Hale’s decision, following a trial over the legitimacy of the NRA’s January bankruptcy filing, means the group will remain incorporated in New York.

Letitia James, New York’s attorney general, had last August filed a lawsuit seeking the dissolution of the NRA, which she accused of corruption and misspending.

“The question the court is faced with is whether the existential threat facing the NRA is the type of threat that the Bankruptcy Code is meant to protect against,” Hale wrote. “The court believes it is not.”

Hale’s dismissal is without prejudice, meaning the NRA can try again to file for bankruptcy, but the judge said the problems identified in its operations could result in the appointment of a trustee to oversee its affairs.

The NRA did not immediately respond to a request for comment.

Closely aligned with U.S. Republican politicians including former President Donald Trump, the NRA has been instrumental for years in thwarting Democratic-backed gun control proposals in the U.S. Congress.

James, a Democrat, has accused the NRA of diverting millions of dollars to fund luxuries for officials including longtime Chief Executive Wayne LaPierre. She also accused it of awarding lucrative contracts to close associates and family members of senior officials.

LaPierre and the NRA have denied wrongdoing.

The NRA filed for Chapter 11 protection in January with the goal of reincorporating in Texas and escaping what it called a corrupt political and regulatory environment in New York.

James and the NRA’s former advertising agency Ackerman McQueen have said the bankruptcy was filed in bad faith and to escape New York’s oversight, with a lawyer for James during closing arguments of the trial calling the bankruptcy a “circus sideshow.”

President Joe Biden’s administration opposed the NRA in the trial. The Justice Department’s bankruptcy watchdog, the U.S. Trustee, urged Hale to dismiss the bankruptcy.

The NRA has called New York’s lawsuit politically motivated. LaPierre testified that he filed for Chapter 11 on behalf of the NRA because he feared James would try to put it into receivership.

The NRA also has faced internal upheaval in recent years including a failed effort to oust LaPierre over allegations of mismanagement.

The NRA was founded in 1871 in New York. Texas is a Republican-governed state whose leaders are friendly to the NRA’s stance against gun control.

A spate of mass shootings in the United States this year prompted Biden in April to call gun violence “a national embarrassment.” The Democratic president has taken some executive action on gun control and has called for broader steps that would require congressional passage including banning military-style assault weapons and large-capacity ammunition magazines.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





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