BOSTON, May 4, 2021 /PRNewswire/ -- Eaton Vance
Management (Eaton Vance) and Parametric Portfolio Associates LLC
(Parametric) announced today that the Eaton Vance Parametric
Investment Tax Calculator available at eatonvance.com/mytaxrate and
parametricportfolio.com/mytaxrate has been updated to enable
individual investors to evaluate the potential impact on their
personal income taxes if the new tax proposals announced by
President Biden on April 28, 2021 are
enacted into law.
As part of his American Families Plan, President Biden has
proposed increasing ordinary income tax rates for individual
taxpayers earning at least $400,000
to 39.6% and eliminating the preferential treatment of long-term
capital gains and qualified dividends for those earning
$1 million or more.
When combined with the 3.8% net investment income tax, the
maximum federal tax rate on ordinary investment income would
increase from 40.8% to 43.4% and the maximum federal rate
applicable to qualified dividends and long-term capital gains would
rise from 23.8% to 43.4%. Including state and local income taxes,
individual taxpayers in 15 states and the District of Columbia would face maximum tax
rates on investment income and gains of more than 50%, with
applicable maximum rates reaching a high of 58.2% in New York City, 57.3% in Multnomah County, Oregon and 56.7% in
California
(statewide).
The Eaton Vance Parametric Investment Tax Calculator is designed
to help U.S. individual taxpayers and their advisors better
understand the income taxes they pay on their investment income and
gains so they can make more-informed investment decisions. Based on
user inputs of annual taxable income, tax filing status and place
of residence, the calculator determines the total tax rate –
including federal, state and local income taxes – that applies to
an incremental dollar of an investor's in-state and out-of-state
municipal bond interest income, U.S. Treasury interest income,
other taxable interest income, qualified and non-qualified dividend
income, net realized long-term and short-term capital gains, and
qualified retirement plan withdrawals. The calculator
provides comprehensive coverage of the federal, state and local
income taxes applicable to the investment income and gains of
resident individual taxpayers across the 50 states and the District
of Columbia. As updated, the calculator also provides
individual investors the opportunity to evaluate the potential
impact of the Biden tax proposals on their personal income
taxes.
About Eaton Vance
Eaton Vance is a recognized leader
in a broad array of income strategies, including floating-rate bank
loans, high-yield bonds, emerging-market debt, mortgage-backed
securities and municipal bonds. Within equities, Eaton Vance is a
leading provider of tax-managed, equity income and option overlay
strategies. With a history dating back to 1924, Eaton Vance applies
principles of fundamental investing to the active management of
equity, income, alternative and multi-asset portfolios on behalf of
individual and institutional investors. Based in Boston, Eaton Vance also maintains investment
offices in London, Dublin, Tokyo
and Singapore. Eaton Vance is part
of Morgan Stanley Investment Management, the asset management
division of Morgan Stanley. For more information, visit
eatonvance.com.
About Parametric
Parametric uses investment science
to build and manage systematic investment strategies and to
implement custom portfolio solutions providing clients with
targeted investment exposures with control of costs and taxes.
Based on principles of intellectual rigor, ingenuity and
transparency, Parametric seeks to deliver repeatable client
outcomes with consistently high levels of service and maximum
efficiency. Parametric has managed assets on behalf of
institutions, high-net-worth individuals and fund investors for
more than 30 years. Headquartered in Seattle, Parametric also has offices in
Minneapolis, New York, Boston, Westport,
Connecticut, and Sydney,
Australia. Parametric is part of Morgan Stanley Investment
Management, the asset management division of Morgan Stanley.
For more information, visit
parametricportfolio.com.
The output of the Eaton Vance Parametric Investment Tax
Calculator is for educational purposes only and should not be
considered investment, legal or tax advice. It is intended for use
by U.S. individual taxpayers resident in the 50 states or the
District of Columbia, and is not
applicable to trusts, estates, corporations or persons subject to
special rules under federal, state or local income tax laws.
The indicated tax treatment of investment income and gains applies
to positions in securities held outside qualified retirement plans
and other tax-deferred or tax-exempt investment vehicles. The
output is general in nature and is not intended to serve as the
primary or sole basis for investment or tax-planning
decisions.
Tax rates indicated as resulting from enactment of the proposed
tax increases announced by President Biden on April 28, 2021 are the combined federal, state
and local income tax rates that would apply to an incremental
dollar of investment income and gain if the proposed tax increases
are enacted. The proposed new maximum rates are assumed to apply to
all individual taxpayers whose taxable income equals or exceeds the
indicated thresholds, regardless of tax filing status. Tax
rates applicable to municipal bond interest income and qualifying
withdrawals from Roth IRA and Roth 401(k) retirement accounts would
not change if the announced proposals are enacted. The Biden tax
proposals are preliminary and subject to change, and may not be
enacted into law.
For more individualized information, you should consult your tax
advisor or investment professional. You bear sole responsibility
for any decisions you make based on the output of the Eaton Vance
Parametric Investment Tax Calculator. The calculator makes certain
assumptions that may not apply to you. The calculator has many
inherent limitations, and individual results may vary.
©2021 Eaton Vance Distributors, Inc. Member FINRA/SIPC
Two International Place, Boston,
MA 02110
View original
content:http://www.prnewswire.com/news-releases/availability-of-investment-tax-calculator-showing-potential-impact-of-the-biden-tax-proposals-301283524.html
SOURCE Eaton Vance Management