Public policy initiatives continue to be hotly debated. One important debate is over tax policy. In the wake of the 2017 Tax Cut and Jobs Act, President elect Joe Biden has introduced a tax plan that would meaningfully increase tax rates on high income earners, including harmonizing long-term and short-term capital gains tax rates. If enacted, this would adversely impact ultra-high-net worth investors and in certain situations, necessitate investment and estate planning decisions prior to the end of 2020.
This white paper examines how proposed tax policy changes might impact portfolio design and spending decisions.