Transcript:
Easan Arulanantham:
So this question came in from Richard. You know, the 2021 congressional sessions have ended on the 10th. What are your thoughts on tax increases for 2022? You know, when they decrease taxes usually takes time to go into effect. But what about tax increases? Do they do they have that same precedent?
Tom Vaughan:
Yeah. So I guess that question is essentially talking about, you know, if they change taxes next year, and they increase them, will you have to pay that increase in 2022? Or will start in 2023? Historically, we’ve seen both, right, where it’s retroactive, or it starts the next year. So that’s impossible to predict. I will say something I don’t think taxes are going to change next year. My effect, I feel really strongly about that. Currently, the build back better program is the one place where they could change taxes, the House passed a you know version of that, and the Senate is having trouble getting that through. And they no they might not, it might look quite different by the time we get through. But when you’re going into an election year, in this midterm year, that’s generally not something you’re going to see. And but that the bill, the House passed had no increases, unless you were at $10 million, or $25 million, or revenue, or you were a corporation, those three could see some increases. But for the rest of us, you know, normal investors, you know, we’re not good, there was no capital gains increase in there, there was no taxable increase at all whatsoever.
There was some kind of restrictions placed in the Roth IRA conversions, but most of those, at least from what I can see won’t have a big impact either. So all the talk that we had prior about, hey, you know, they’re going to raise capital gains. That’s because that was part of the platform that’s not happening. They were going to increase the top tax bracket and actually make capital gains be equal to the top tax bracket for incomes above a million dollars for somebody selling their house, that would have been a huge deal. That’s not happening. And especially not going to happen here heading into this, you know, midterm election is not it’s not even on the table. So do not see that hey, got killed already. I don’t see it just popping up all of a sudden and somehow getting past these people aren’t going to change their mind. And so anyway, that and on the next Congress won’t be in until 2023. Right? The election is November but they aren’t seated until 2023. Things could change then depending on what the power dynamic is and what have you. So I wouldn’t I wouldn’t worry too much about the taxes. I think that’s off the table at this point in time personally.