Buried deep in President Joe Biden’s 2021 tax plan are new amendments to the United States’ Qualified Small Business Stock (QSBS) program, which, if passed, will directly impact early-stage startup employees, founders and investors.
Lawmakers say the proposed changes to QSBS are designed to raise taxes on America’s millionaires and billionaires. But the net they’re casting is so wide that it will undoubtedly catch rank-and-file startup employees, who can easily (and temporarily) find themselves pushed into the country’s top tax bracket if they exercise stock options or sell their shares.
