The Compound and Friends Bill Sweet on the Tax Time Bomb, the Bull Market Turns Two
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Oct 15, 2024 Bill Sweet, CFO of Ritholtz Wealth Management and principal at RWM Tax, dives into the potential fallout from upcoming tax cuts expiring in 2025. He discusses how individual tax cuts from the 2017 reform are temporary and the implications of potential tax increases for American households. Sweet also highlights the challenges of navigating the SALT cap's effects on high-income earners in blue states. Additionally, he reflects on the current bull market, especially the impressive recovery of tech stocks, and emphasizes key year-end tax strategies for investors.
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Tax Cuts Expiration
- The Tax Cuts and Jobs Act of 2017 significantly lowered tax rates for most Americans and corporations.
- These cuts, however, were temporary and are set to expire at the end of 2025.
Potential Republican Tax Reform
- Consider the potential impact of a Republican sweep on tax reform.
- They may extend existing cuts, further lower corporate taxes, and address the SALT cap.
SALT Cap Compromise
- The SALT cap limits deductions for state and local taxes, impacting residents of high-tax states.
- A compromise could involve raising the cap but not eliminating it entirely.