There is a lot of buzz going around about infrastructure bills. How could they impact you? We talk about “how the sausage is made” in bills like these as well as how you can prepare for them.
What is happening with the latest infrastructure bills? It’s hard to keep track of everything going on in Congress. Let’s sort out the two big bills being proposed and the financial implications of each one on today’s show.
The American Jobs Plan is most likely to pass this Thursday. What does that mean? In August, the Senate voted to approve a trillion-dollar infrastructure plan for things like roads and bridges. It will be paid for by increases in corporate tax rates.
The American Families Plan is a $3.5 trillion plan that we are not sure will pass just yet. Republicans have expressed they won’t vote for it because it is too much money too broadly spent. Things like universal daycare or community college are included in the current proposal. To get something through the Senate, it will likely need to go through the budget reconciliation process. This was the same process used for the Trump tax cuts that are set to expire. David is convinced this will pass but significantly trimmed down from where it stands currently.
Remember that President Biden was clear in his promise to not raise taxes on people who make less than $400,000 a year, so it’s unlikely he would sign off on something that would differ from that. What’s the status of long-term capital gains? Can you still do Roth conversions after you make more than $400,000 a year? We also share a few other possible changes that may or may not pass.
Are there any actionable things you can do to prepare? You might be in a window of time where you can pay taxes on your capital gains. But, be sure to defer capital losses for later. If you have an estate worth greater than $10 million, you may want to gift some of your money now. Reach out to your financial advisor to see what makes the most sense for your financial situation.
“Our rules have made it difficult for stuff to pass unless there’s a significant wave behind it, and I think that’s the way the founding fathers set it up. And it makes this a beautiful place to live.”
– David Dickens
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CONTACT US
OUR LOCATION
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Building 27, Suite 190
Overland Park, KS 66210
Get Directions
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