Tax planning

The dilemma represents another challenge with the special legislative process known as budget reconciliation.

The Biden administration’s proposal to dramatically expand the inheritance tax bill for wealthy Americans is running into some headwinds with Democrats on Capitol Hill, showcasing nervousness about the scope and size of elements of the White House’s ambitious tax plans.

Pulling the costs directly out of clients’ IRAs can blunt the sting, but it shrinks the pot of tax-deferred retirement assets.

But barterers need to be aware of the complex tax issues that are involved.

The president and Republican congressional leaders see a narrow opening for compromise on infrastructure spending yet significant obstacles remain, particularly on tax increases.

Financial executives are eyeing tax changes expected in the Biden administration, demands for more environmental, social and governance reporting, and diversity efforts.

Affluent clients can use wealth and retirement strategies to blunt the impact of the administration’s proposals, which include a higher capital gains rate.

Any changes to inheritance tax would feed into the broader upheaval that is coming to taxation in the world’s major economies.

April's hiring shortfall stiffened Republican opposition to the tax increases on the wealthy and corporations that are a central part of the administration's package.

The president's plan for increased tax audits of the wealthy and corporations is a major funding source for his economic-investment proposals.