Are you ready…for higher taxes?
I know, it's never good news, but the Bush tax cuts are set to expire at the end of the year and when they do --- whammo!
We are all going to get hit -no matter how much money you make.
Here's why: The current six tax-rate brackets of 10%, 15%, 25%, 28%, 33% and 35% will be replaced by five new brackets with the higher rates of 15%, 28%, 31%, 36% and 39.6%.
For a while, it looked like Congress might opt to stick with the current brackets -- as a way to help low income folks. But the reality now, with massive deficits, is that that fix might not happen.
That's not the only thing to worry about: Investors and savers are about to get stung, too.
The maximum tax rate on long-term capital gains is set to go to 20% from 15%.
Maximum rates on dividends skyrockets to 39.6%; so much for saving for the future.
Then the marriage- penalty tax returns -- for high earners, low earners and everybody in between.
And, of course, as we've been saying on the Willis Report, the death tax jumps to 55% unless no action is taken.
Bottom line, your bottom line is about to get hammered -- if Congress takes no action.
If you have an accountant or financial advisor, it's probably time to call them and start talking about what you need to do to get prepared... because it's going to be an expensive 2011.