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According to the CNBC Millionaire Survey, US millionaires are set for a tax hike next year, despite predictions from the Washington gridlock and Republican-led Senate.
According to the survey, nearly two-thirds of millionaires say taxes will be increased under a Biden administration, which questioned 750 people with investable assets of more than $ 1 million. And 43% say they already pay too much in taxes, according to the survey.
“I think the rich look at spending for the stimulation and effects of the virus and they recognize that some form of their taxes will increase for many years,” said George Walper, CEO of Spectrum Group, which surveys with CNBC. “They are realistic.”
President-Elect Joe Biden promised to raise taxes on those earning more than $ 400,000 per year. Yet with the possibility of the Senate being divided or remaining under Republican control, it seems less likely to pass any major tax overhaul.
Nevertheless, as deficits and spending increase, many of the wealthy expect that some form of tax will increase to compensate for costs. Walper said that even if federal income taxes do not increase, states and local governments may have to increase taxes to address the lack of new federal aid.
“You look at real estate taxes, they can go up,” Walper said.
When it comes to tax fairness, America’s millionaires feel that they already pay enough. While 50% say they feel that what they pay is reasonable, 43% say they pay too much, while 8% say they pay too little.
At the same time, he thinks Biden’s income limit for tax increases is $ 400,000. More than half stated that the $ 400,000 cutoff was “about right”, while roughly the same number (22% and 26%) say it is either too high or too low. However, reactions differed by political party. Only 11% of Democrats said the $ 400,000 threshold was too low, compared to 38% of Republicans.
Despite predictions that bids sell rich stocks or make major changes to their wealth due to tax plans, millionaires make some changes to their investments or financial planning as a result of a possible tax increase. Only 17% planned to sell the stock in 2021 as a result of potential tax changes. With Biden advocating an increased property tax, a 16% plan was made to change his giving or estate plan.