The Joe Biden Budget Proposal for 2025 and Investment Migration

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As 2024 is famously the Year of Elections, we know that political developments will have a knock-on effect on investment migration. Informed investors are already weighing up the pros and cons of migrating to a country if their chosen candidate loses. But there are factors to consider beyond elections such as the Biden budget proposal for 2025.

What Does Biden Propose for the 2025 Budget?

Across the world, there’s the perception that left-wing governments tax more punitively than right-wing administrations. However, in reality, that’s not always the case, as the conservative Tory party has been demonstrating in recent years in the UK. Nevertheless, the Democrats are associated with taxing citizens more than the laissez-faire Republicans in the US.

Yet again, the truth is less black and white as The White House’s FACT SHEET: The President’s Budget for Fiscal Year 2025 shows. This followed Biden’s release of his fiscal 2025 budget in Washington, D.C. on Monday, March 11.

The statement maintains that “in addition to honoring his pledge not to raise taxes on anyone earning less than $400,000 annually, President Biden’s tax plan would cut taxes for middle- and low-income Americans by $765 billion over 10 years.”

There is, though, the inference that those with broader means should contribute more. This backs up The Wall Street Journal‘s Potomac Watch podcast’s portrayal of Biden as a proponent of the Tax-the-Rich school. 

WSJ columnist Allysia Finley alleges that Biden “wants to increase the top marginal rate to 39.6% from 37%. That will actually automatically go up with the expiration of the 2017 tax reforms. But in addition, he wants to apply that 39.6% rate to capital gains for people earning over $400,000 and that’d be up from about 20% right now.”

The RIF Trust Take on the Biden Budget Proposal

Ranny Muasher is the epitome of the American Dream, the child of immigrants. He was born and bred in Ohio’s Cincinnati. Despite being based on the other side of the world now, he keeps a close eye on US proceedings.

He thinks that The Wall Street Journal “is being overly alarmist.” “They even admit this is a fantasy budget that is unlikely to pass.”

“Yet higher-income families planning on moving to the US should be concerned about Biden’s tax plans. The President has ambitious spending on the agenda. Funds have to come from somewhere and Biden appears to be targeting HNWIS and their deeper pockets.”

The Best Way to Respond to Budget Plans

If you want to prevent yourself from extra tax liability, there are alternative Residency and Citizenship by Investment solutions. Talking to an investment migration expert will allow you to assess your options better. So, don’t delay and contact RIF Trust today.