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President Biden's Proposed Changes to the TCJA

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The Tax Cuts and Jobs Act (TCJA) that went into effect in 2017 had numerous impacts on taxpayers. Now, President Biden wants to make changes to the TCJA; specifically, he's looking to change the top income tax bracket. Julian Block explains in part 3 of his series on bestselling authors and their questions.

Jun 10th 2021
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Just joining us? What you’ll find back in part one: my answer to a query from Patrick. While I’d characterize him as an easily irritated fellow and a remarkably self-enamored author, I admire someone who churns out best-sellers.

Another of Patrick’s less admirable traits: He just has to impress people. For instance, Patrick will go on interminably about how he expects to be the recipient in 2021 of a seven-figure-check for the sale of his personal papers. With good reason, says Patrick, because, as explained in more detail in part one, his voluminous cache includes original manuscripts and historic exchanges of correspondence with boldface names and A-listers.

What awaits you back in part two: a discussion of the seven brackets for ordinary income from sources like salaries and other kinds of compensation that top out at 37 percent for 2021; and “indexing” of the brackets.

What you’re about to read in part three: a discussion of: “taxable income"” and why it’s a no-brainer that Patrick will be hit with the top rate of 37 percent. It’ll explain how an affluent author like Patrick could be adversely affected in the event President Biden overcomes opposition in the Senate–– by probably all of the fifty Republicans and perhaps even some of the fifty Democrats––and prevails on his proposal to return the top rate of 37 percent to the 39.6 percent that it was before Congress approved and then-president Trump signed the Tax Cuts and Job Act.

Taxable income. The brackets apply to “taxable income” (line 15 of the 1040 for calendar year 2020).

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By velacpa
Jun 16th 2021 16:57

Like an old buddy from the military says every so often, Julian Block always seems to find a way to express these important issues in a way that's "timely, relevant and profound"! What I found most profound in this discussion is that it reminded me something a political science professor said in 1977 (y'all don't laugh). He said something along the lines of, these politicians, they don't care about our legislative process or their constituents, all they really care about is getting re-elected, and whatever means are necessary to reach that goal. In any event, all I really want to say is Thank You Julian Block, AGAIN! Armando Vela, CPA, Katy, Texas

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By SkinnVinny
Jun 17th 2021 05:18

I always look forward to Julian's articles. Very witty and informative.

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