U.S. individuals living in Canada should prepare to determine the effect of possible new U.S. tax changes. The United States recently released details of planned personal income tax proposals, including to:

  • Raise the top individual income tax rate to 39.6% (from 37%)
  • Raise the tax rate on capital gains and qualified dividends for households with income over $1 million to 39.6% (from a maximum 20%)
  • Extend the child tax credit expansion through 2025 and make the child tax credit fully refundable on a permanent basis.

Note that these potential measures may face legislative challenges due to the Democrat's narrow control of U.S. Congress. It's not yet clear how these challenges may affect any forthcoming legislative proposals or the enactment process.

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