Biden’s huge tax hike shocked wealthy Americans

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America’s ultra-rich are worried about the Biden tax plan. Billions of new taxes will hit America’s richest. The Biden administration will raise the highest tax rates on income and capital gains, and the richest 1% of taxpayers will bear the burden.

According to the White House, the top tax rate will rise to 39.6%. Garrett Watson, senior policy analyst at the Tax Foundation, said households with incomes above about $ 540,000 are among the richest 1% of U.S. taxpayers. The new tax revenues are intended for the American Families Plan. It will fund expanded education, childcare services, paid holidays and other reforms.

No comprehensive tax reform

Canada’s Deputy Prime Minister and Minister of Finance Chrystia Freeland presented the 2021 federal budget. The forecast is a budget deficit of $ 354.2 billion for 2020-2021 and $ 154.7 billion for 2021- 2022. Some analysts observe that the focus is more on economic recovery from the pandemic in Canada.

Likewise, there are no changes to federal personal or corporate tax rates. The federal government has extended programs such as the Canada Emergency Wage Subsidy (SCAR), the Canada Emergency Rent Subsidy (CERS) and foreclosure support until September 25, 2021.

Notably, the budget did not introduce wealth tax, increase the inclusion rate for capital gains, or change the principal residence exemption. In short, the Ministry of Finance has not announced comprehensive tax reform.

Stimulus hiring program in Canada

With respect to the new Stimulus Canada hiring program, eligible employers will receive a subsidy of up to 50% on additional compensation paid to eligible employees. The program will run from June 6, 2021 to November 20, 2021.

However, eligible employers can only claim one for a given qualification period – either the SCAR or the Hiring Grant. Although CEWS, CERS and Lockdown Support have extensions, the subsidy rates for these programs will gradually decrease from July 4, 2021.

In addition, publicly traded companies that receive the wage subsidy must not pay their executives more in 2021 than in 2019. Otherwise, they must repay the equivalent amounts of wage subsidy received after June 5, 2021 and until the end. of the wage subsidy program.

High-yielding mid-level gold stocks

The S & P / TSX Composite Index lost more than 30% of its value in the first months of the global pandemic. Nonetheless, Canada’s primary stock market recovered from the losses and managed to post a gain of 2.2% for 2020. At the end of April 2021, the TSX remains in positive territory with its gain of 9.6 %.

Canadians can build a larger financial reserve this year from high yielding stocks like Aura Minerals (TSX: ORA). This $ 973.42 million gold and copper producer’s share price is just $ 13.76 and is paying 7.14%. On April 6, 2021, the company paid a total of US $ 60 million to shareholders.

Rodrigo Barbosa, president and CEO of Aura, said the company ended 2020 with $ 118 million in cash and $ 48 million in negative net debt. Management expects gold equivalent ounce production to increase by 42% in 2021. If you want exposure to the world’s most valuable metal, Aura is an attractive option.

Wealth tax

The doubling of the capital gains tax rate upsets rich Americans. Meanwhile, people across the border in Canada don’t have to worry about a wealth tax in 2021.

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