Wealthy Clients Mostly Avoid New Taxes as Spending Bill Nears Finish Line

The Inflation Reduction Act promises $790 billion in funding to health care and climate initiatives over the next decade. Initial drafts included potential tax hikes for wealthy Americans, but the final bill has only a few tax provisions that do not directly target high-net-worth individuals.

Partner Bob Lickwar said that the tax provisions are relatively straight forward to sort through. “There are not a lot of tax components to this bill,” Lickwar said. Part of the reason being that raising taxes on individuals is a sensitive topic and “nobody wants to pull the trigger. My clients are happy.”

Instead, corporations can potentially see increases to their taxes, including a 1% tax on stock buybacks. Despite fears the tax will seriously impact retirement plans, Lickwar said, “People will continue to save. It’s just another nibble out of their retirement plan.”

Read the full article published by Investment News.