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Tax-Smart Investing

The tax code is always in flux, which makes it difficult to plan for tax changes with any real certainty. Still, those who’ve built up significant wealth will want to pay particular attention to a spate of recent federal tax proposals.

If passed, the American Families Plan would increase the top income tax bracket to 39.6% from 37%; treat all capital gains and investment income as ordinary income for those who earn more than $1 million; and do away with the step-up in cost basis for inherited assets that have appreciated by more than $1 million. 

At Schwab, we don’t believe taxes should be your first consideration when making financial decisions—but we do believe in following tax-efficient strategies to help ensure you and your heirs don’t pay more than your fair share. From charitable giving, to tax-loss harvesting, to the strategic use of trusts, there’s plenty you can do to minimize your tax liability without rethinking your strategy every time there’s a change in administrations or tax law.

For help creating your tax-smart investment plan, talk to your Schwab financial consultant or stop by your local branch.


Charles R. Schwab

Founder & Chairman

Important Disclosures

Schwab recommends consultation with a qualified tax advisor, CPA, financial planner, or investment manager where specific advice is necessary. Any policy analysis does not constitute and should not be interpreted as an endorsement of any political party.


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