The DNC of the US House of Representatives passed a tax increase bill on the 15th. If the review goes well, it is expected to be implemented in the future. It may greatly impact Taiwanese corporations with annual incomes over US$5 million; high-income Taiwanese working in the United States; and Taiwanese who hold green cards or dual nationalities and take root in the United States, according to the Big Four accounting firms.

In order to raise US $3.5 trillion in President Biden's social expenditures plan, the Democratic Party intends to increase the maximum personal income tax rate from 37% to 39.6%, and the maximum corporate income tax rate from 21% to 26.5%.

Regarding individual income tax, the preliminary plan is to increase the marginal tax rate from the current 37% to 39.6%. Capital gains tax rate will be increased from 20% to 25% for Americans with taxable income over US $400,000. In addition, for high-income earners (income of more than US $5 million), non-passive income from individuals, trusts and estates will be levied on net investment income tax and a high-income surcharge of 3%. The US also reduces the current lifetime tax exemption of US$11.7 million for bequests to US $5 million.

In terms of corporate tax, the preliminary plan is to change the tax rate from the original single tax rate system (21%) to a three-tier accumulated tax rate system. For those with an annual income of less than US$400,000, the tax rate is 18%, and the tax rates are 21% and 26.5% for an annual income between US$400,000 and US$5 million and an annual income over US $5 million respectively...