New Taxes in the USA = Move to Portugal

President Biden has proposed a number of tax changes in his 2023 budget, including:

• Raising the top individual income tax rate from 37% to 39.6% for income above $400,000 for single filers and $450,000 for joint filers.
• Creating a new minimum tax of 25% on income and unrealized capital gains for households with more than $100 million in total wealth.
• Increasing the corporate income tax rate from 21% to 28%.
• Expanding the base of the net investment income tax (NIIT) to include nonpassive business income and increasing the rates for the NIIT and the additional Medicare tax to reach 5 percent on income above $400,000 (effective 2023).

These tax increases would be used to fund a number of new government programs, such as infrastructure, education, and family programs.

It is important to note that these tax proposals are still in the early stages of the legislative process, and it is unclear whether they will be passed into law. However, if they are passed, they could have a significant impact on the taxes paid by high-income individuals and corporations.

If you are considering moving to Portugal, it is important to weigh the pros and cons of both countries' tax systems. Portugal offers a number of tax benefits to Americans, but the US tax system may be more favorable to you if you have a very high income or significant business interests in the United States.

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