Investment Executive – How the Democrats’ proposed tax policy could affect cross-border clients
Matt Altro was recently interviewed by Michelle Schriver from Investment Executive to explain the potential tax impact the 2020 US Presidential election may have on US citizens living in Canada. The article focuses on the potential tax changes that Joe Biden is proposing, which includes lowering the US estate tax exemption, changes to taxing capital gains as income, corporate changes for business owners and global intangible low-tax income (GILTI), and more.
You can see part of the article below, or you can click here to view it in-full on the Investment Executive website.
How the Democrats’ proposed tax policy could affect cross-border clients
October 9, 2020
The republicans and democrats couldn’t diverge more on tax policy. While President Donald Trump continues to focus on tax cuts, Democratic nominee Joe Biden proposes tax increases aimed at the wealthy and corporations — increases that could affect your cross-border clients if the Dems win in November.
However, the Democrats could find that passing major tax legislation will be difficult absent a strong blue sweep in the election. Tax policy originates in Congress, and the Dems currently control only the House.
With that caveat in mind, as well as acknowledging that neither party had released a detailed tax policy as of press time, here’s a high-level look at potential tax changes that may affect clients north of the border.
The focus is on Biden, because Trump’s tax policy wouldn’t have significant implications. The president wants to make permanent the provisions in the 2017 Tax Cuts and Jobs Act (TCJA) that are set to expire after 2025, and potentially build on tax cuts for middle-income Americans.
MCA Cross Border Advisors, Inc. is a registered investment adviser. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and, unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein. Past performance is not indicative of future performance.>