Let’s start with the infrastructure bill. It passed the Senate with some bipartisan support. It now goes to the House of Representatives for consideration. The bulk of this bill tackles traditional infrastructure, like roads and bridges. Most of the American public and House representatives believe infrastructure to be an important investment in America. On its own, it would likely pass in the House and make it’s way to the President’s desk.
But don’t expect it to go that smoothly.
It’s likely that consideration of the infrastructure bill will be tied in some way to the House’s review of the $3.5 trillion budget resolution.
The budget resolution is not in and of itself legislation. (Learn more about budget resolution here.) Rather, it’s a statement about spending priorities and the first step in the budget reconciliation process, which includes crafting spending and revenue bills that could become law.
The President’s American Families Plan is becoming more a reality, but it likely still has months and many battles to go before we know if some or all of it will become law.
The Administration has been clear that paying for the American Families Plan would require an increase in taxes for both corporations and wealthy individuals.
In May of this year our Director of Financial Planning, Ed Jastrem, outlined a few key tax proposals that we are watching closely for our clients. While it’s hard to plan ahead for the unknown, we can certainly start preparing financial and estate plans for the flexibility needed to shift strategy once the situation becomes more clear.
Ed recently updated his outline and suggested strategies. See his updated overview here.
The planning considerations outlined by Ed are only brief overviews of select strategies. No one can be certain how developing legislation may yet target specific transfer techniques. If you are concerned about higher income or estate taxes going forward, we recommend taking the following steps now:
At Heritage Financial, our signature Three Meeting Process is a chance for you to test drive working with us before formally becoming a client. Why? Because our goal is to develop long-term relationships. And long-term relationships are built upon trust.
Give us an opportunity to build that trust through an eye-opening experience that includes a deep discussion of your current financial situation, an introduction to our financial planning and investment teams, and a review of their opinions about your current plan.
Ready to hear what our teams think? Contact us here to get the process started.
Kristin Castner, CFA
At Heritage Kristin is responsible for overall marketing strategy, with a focus on communicating the firm's message to clients and prospects and creating outreach programs to engage clients, partners and prospective clients.
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