EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients.
How EY can help
-
Americas and US Tax Policy at Ernst & Young LLP is a one-stop resource for insights on national and state tax reform, tax policy, regulatory changes and legislation.
Read more
- Increasing the top tax rate for individuals to 39.6%
- Imposing a minimum tax on wealthy individuals
- Taxing some capital gain at ordinary income tax rates
- Expanding triggering events for capital gains recognition
- Modifying rules for certain grantor trusts
- Modifying tax administration for trusts and estates
- Taxing IRC Section 1250 property as ordinary income
- Taxing carried interest as ordinary income
- Limiting like-kind exchanges
Note that even if the proposal to increase the top rate on ordinary income does not become a reality, that rate is slated to return to 39.6% in 2026, when changes made by the Tax Cuts and Jobs Act (TCJA) expire. The President's budget proposal would lower the threshold at which the top rate takes effect.
The minimum tax proposal is similar in many respects to one previously pitched by Senate Finance Committee Chair Ron Wyden (D-OR). Questions remain, however, as to the constitutionality and administrability of such a proposal.
Private equity, private capital, and other alternative asset management funds and their professionals could face increased tax liabilities if either the carried interest proposal or the proposal to increase capital gains rates is enacted.