7 Ways to Prepare for Higher Taxes

The tax climate is changing, and your retirement planning strategies could use some tweaks to stay on top of the situation.

The sun shines over a stack of dollar bills.
(Image credit: Getty Images)

President Biden is pushing an agenda of raising taxes on corporations and the wealthy to help fund proposed bills for infrastructure and social safety net programs.

Under his plans, the corporate tax rate could increase from its current rate of 21% to between 25% and 28%, and the long-term capital gains tax rate could rise from 20% to 39.6% for anyone making more than $1 million per year.

There are other potential tax increases as well to consider, such as marginal income tax rates and estate taxes. Amid all these uncertainties, it’s important to be prepared, as one or more of these proposed hikes could dramatically affect your tax burden.

Here are seven ways you can prepare for higher taxes and put yourself in a better position to ready your estate:


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Reid Johnson, Investment Adviser
Insurance Professional and President, Lake Point Advisory Group LLC

Reid Johnson, TX license 1068067, is president and founder of Texas-based Lake Point Advisory Group, LLC (www.lakepointadvisorygroup.com). As a financial professional and fiduciary when providing financial advice, he is dedicated to providing his clients with the individual attention necessary to help them pursue their financial goals. He has contributed to various media sites, including Wall Street Select, CNN and The Star-Telegram.