Whatever your political affiliation, U.S. business owners are accessing the likelihood, timing and impact of tax proposals from Vice President Biden and the Democrats if they win the White House and control Congress.
Colonnade’s memo focuses on potential changes to investment taxes and, in particular, the possibility of long term capital gains rates doubling to nearly 40% from current levels of 20%. Including the 3.8% net investment tax already in place, capital gains could be taxed at a higher rate than ordinary income in the new administration. The proposed change to the capital gains tax rate is accelerating strategic discussions among business owners considering selling all or a portion of their companies in the next several years.
You can read the full memo here.