Tax Moves to Make Now If You Think Biden Will Be President

"I'm going to get rid of the bulk of Trump's $2 trillion tax cut, and a lot of you may not like that, but I'm going to close loopholes like capital gains and stepped-up basis." — Joe Biden, in a speech to potential campaign donors on June 29.

(Image credit: Getty Images)

After a period of historically low tax rates and an exploding national debt, an era of higher taxation could arrive with a Joe Biden presidency next year, or with another progressive in five years. How does this potential change affect those entering or near retirement? Perhaps not favorably: You will be on a fixed income, but your taxes could increase, creating an additional drag on your retirement funds.

These same higher taxes could have a potentially negative impact on stock and dividend growth. Heavy-handed taxes at the corporate level could result in a dramatic slowing in GDP and spur multinational companies to leave our shores for a more favorable tax environment.

Subscribe to Kiplinger’s Personal Finance

Be a smarter, better informed investor.

Save up to 74%

Sign up for Kiplinger’s Free E-Newsletters

Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.

Profit and prosper with the best of expert advice - straight to your e-mail.

Sign up

Investment advisory and financial planning services are offered through Alphastar Capital Management LLC (“Alphastar”), a SEC registered investment adviser ILG Financial LLC and Alphastar are separate and independent entities. Investing involves risk, including the potential loss of principal. Past performance is not a guarantee or predictor of future results. All investment strategies have the potential for profit or loss. ILG Financial LLC offers insurance products through individuals licensed to sell insurance. Comments regarding guaranteed returns or income streams refer only to fixed insurance products offered by ILG Financial LLC and, unless specifically stated, do not refer in any way to securities or investment advisory products offered by Alphastar. Fixed insurance and annuity product guarantees are subject to the claims paying ability of the issuing company. Opinions expressed are general in nature, subject to change without notice and are not intended and should not be interpreted as specific investment advice for you or your investments or portfolio. Since individual circumstances vary, you should consult your legal, tax or financial advisers for specific information.


This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

To continue reading this article
please register for free

This is different from signing in to your print subscription

Why am I seeing this? Find out more here

Dave Lopez, Investment Advisor Representative (IAR)
Founder, ILG Financial, LLC

Dave Lopez is the Founder of ILG Financial, which has been in business for over 11 years and he has built out hundreds of Retirement Plans. Dave is a Fiduciary Investment Advisory and holds a Life, Long Term Care, and Annuity License. He has his own radio show, "Retire Your Way with Dave Lopez," currently available as a podcast. He is also a best-selling co-author of the Amazon book "Mama's Secret Recipe for Retirement Success" with Jack Canfield and has been featured in many finance periodicals.