News of Microsoft co-founder Bill Gates’ divorce has recently become a hot topic for discussion from outside the world. There is an opinion that this might be a way to avoid taxes. This opinion comes in the context of many Americans now looking for ways to combat Mr. Biden’s tax increase.
Mr. Bill Gates and Mrs. Melinda (Photo: Video screen capture)
As the founder of Microsoft and one of the richest people in the world, Bill Gates’ divorce announcement on May 3, ending 27 years of living with his wife Melinda, has spread rapidly on social platforms. and media. However, the two also released a joint statement, saying they will continue with the charity’s work in the future.
Regarding the reason for the divorce, although Mr. Bill Gates said on Twitter that “cannot continue to grow together”, the foreign world still has a stir, one of the comments said that the two divorce to avoid succession. Tax increases are promoted by the Biden Government.
However, according to industry analysts, this reason is not convincing, because even when the Gates divorce, with their combined fortune of more than 130 billion, they still cannot get out of the Biden administration’s tax scope. Therefore, this is not the main reason for the divorce of the Gates family.
On May 5, according to a report by Phoenix Business (Phuong Hoang Finance), US criminal lawyer Liu Longzhou (Liu Longzhu), analyzed that “tax avoidance” is very unlikely. Because in the United States, such a wealthy class has long had a full suite of tax avoidance methods, and a dedicated team of tax specialists, tax attorneys … will do it.
In addition, lawyer Liu also said that no matter how Mr. Biden’s tax increase plan will ultimately be implemented, for Bill Gates and his wife, if there is a big impact, it will not be great. From American society and the attorney’s own assessment of divorce cases, have also never seen a divorce to save taxes.
The tax plan stems from a promise made by incumbent US President Biden during his campaign to raise taxes on businesses and the wealthy to finance other expenses.
Mr. Biden plans to raise taxes on millionaires to fund education, childcare and other spending programs. 39.6% income tax on the wealthy in the United States, plus the additional 3.8% existing additional tax on investment income, the total federal government capital will increase the rate at which the rich face can be as high as 43.4%.
Taxpayers with an annual income of at least $ 1 million may face a tax on investment income of more than 50%. If this tax plan is implemented, the combined federal and state capital income taxes faced by taxpayers like California could be as high as 56.7%. This overall capital income tax for high-income people in New York state can be as high as 52.22%.
According to a report by Reuters, wealth management consultants are advising clients to maximize their retirement accounts; Investing their profits in opportunity zone funds can be tax deferred and even sold some assets to avoid the effects of a rise in US capital income taxes.
“I think no one is willing to pay extra taxes, we tell our customers it is not a matter of whether or not the tax is levied, it is a matter of timing and tax rate,” Alvina Lo, director Property strategy at Wilmington Trust said.
She said her clients are deciding which assets and stocks to sell to close their current tax rates and maximize their contribution to a deferred tax-paid personal retirement (IRA) account. Some people are also moving their retirement accounts from an IRA to a Roth IRA, which is not taxed on withdrawals like a traditional IRA.
If the tax change does return to early 2021, it may be too late to close the current lower tax rate on certain capital gains.
“Our customers have accepted this fact, they just want to do what they can to plan wisely,” said Alvina Lo.
Recently, however, the US media outlet “Washington Examiner” has published an editorial criticizing Mr. Biden for plotting to deceive the public with false statements, leading people to believe that his tax increase plan is only is aimed at the rich. The real target of Mr. Biden’s measures, however, is the broad middle class. Mr. Biden himself knows this very well, but has repeatedly used lies to justify his actions.
