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One of them is how the candidates policies could impact your finances.
Based on her early campaign speeches, several potential policies for Kamala Harris could significantly impactwealthy retirees.
A Possible Wealth Tax
Many people are unaware of what a wealth tax is.
Thats because comprehensive wealth taxes have never been implemented in the United States.
If a wealth tax was established, it could potentially mean double or triple the taxes for wealthy individuals.
Harris has been on record supporting anational wealth tax, which could significantly impact wealthy retirees.
This would increase the tax liability for wealthy families after their death.
Higher income andcapital gains taxrates will reduce investment income and the value of taxable portfolios.
However, there is also a gift tax to be aware of.
For 2024, each gifter can give up to $18,000 per recipient annually.
Anything above that amount is subject to a gift tax.
Its expected that Harris would most likely reduce the gift exemption, as well.
Irrevocable trusts can minimizefuture estate taxesand help avoid the probate process upon death.
However, once irrevocable trusts are executed, making changes to the trust is very difficult.
The federal government then charges a tax on these capital gains.
However, these rates could increase under a Harris presidency.
This is because they may be selling assets to provide income during retirement.
Kamala Harris has proposed raisingcapital gains taxesfor high earners, said Brillant.
This could significantly impact wealthy retirees who rely on investment income.
This will allow your income to grow tax-free.
see to it you keep these things in mind when making your decision come November.
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