In late April, President Joe Biden introduced the much-anticipated American Jobs Plan, which outlines an approach to spend roughly $2.2 trillion on the nation's infrastructure and other projects along with a proposal to increase taxes. The plan proposes tax policy changes affecting both individuals and corporations. For this piece, we've summarized some of the key points of the proposal related to individuals.
The initiatives that will take priority may become more clear in the weeks and months ahead. We are watching this closely and are having discussions internally, as well as with our professional partners, across all areas of planning that could be affected by potential policy changes. These potential changes will impact planning decisions including cash flows, portfolio allocations, philanthropic, and estate & tax planning.
At this point, there are more unknowns than knowns. What we do know, with history as a guide, is that there will be several versions and revisions of the proposal before any legislation is enacted in Washington. We will proactively work with clients to provide updates, as well as review possible planning considerations.