In our previous sessions we discussed Individual tax provisions and a few specific tax items. Let’s take a look at some more, shall we?

 

Retirement plans – currently employers may offer several different types of employee retirement plans, but are not legally required to do so. The Trump plan does not change this. The Biden plan calls for an automatic 401(k) plan for those not already covered by employer plans. Employers would be required to offer and set up these plans. There would be some tax credits available to small employers to help offset startup costs on plans. Biden would allow penalty free hardship withdrawals from plans for sexual assault and domestic violence victims.

 

Health Care is a big one. It’s no secret that Trump wants to repeal Obamacare and the corresponding Net Investment income Tax. He already has reduced the individual mandate penalty to zero. Biden would retain existing law but increase access to insurance premium tax credits by removing the upper income cap and would base credits on the Gold plans instead of Silver plans. Biden will impose penalties on drug manufacturers who increase prices over the general inflation rate. He would terminate pharmaceutical corporation tax deductions for advertising. He would create a $5,000 tax credit for using informal caregivers including family members, and increase deductibility of long-term care policies for older taxpayers paying for the premiums from savings.

 

Stay tuned for the next installment, when we dive into corporate and business incentives!