Jim Lill, CEO of Axion Risk Management Strategies, provides insight on the upcoming Biden Tax Reform and the affect it will have on businesses.
· Business owners are the job creators and typically the taxpayers most impacted by an increase in capital gains taxes. When capital gains are taxed at an increased rate less jobs are created because the capital necessary for growth and hiring has been reduced.
· Expanding businesses and job creation results in more revenue and more income taxes for the federal government, if instead revenue goes to the federal government in the form of capital gains, the expansion will be minimized.
· Although, taxpayers in the lower brackets are not impacted as much on capital gains as people in the higher tax bracket. Increasing capital gains will reduce the opportunity for the average investor to have more growth within their investment portfolio and 401(k). Higher taxes result in less market growth.