Are Taxes Going to Increase in 2021?
Don’t expect tax increases in 2021, either on corporations or rich individuals. Joe Biden may have campaigned on higher taxes for individuals making over $400,000 and for regular corporations, and on estate tax hikes. But though the Georgia elections put Democrats in control of the Senate, the odds of any tax hikes this year are still slim. Raising taxes before the economy fully recovers is risky. Also, it’s not certain that all Senate Democrats are on board with tax hikes, and Biden needs all of them. It wouldn’t surprise us to see the president wait a while, maybe 2022, to advocate for major tax hikes, and even then, expect any revenue-raising proposals to be used to help pay for other priorities, such as education, health care or the environment. Even on the chance that he proposes tax hikes this year, they won’t apply for 2021. Kiplinger Tax Letter Jan. 22, 2021