Higher Taxes Are Coming… Are You Ready?
The odds are fairly good that tax rates will increase in 2013. If Congress allows the Economic Growth and Tax Relief Reconciliation Act of 2001 and Jobs and Growth Tax Relief Reconciliation Act of 2003 to expire, we can expect the following:
- Income tax rates to increase from 33% to 36% and 35% to 39.6% for the two top tax brackets
- Tax rates on qualified dividends to increase from 15% to 39.6% for the top tax brackets
- Federal long-term capital gains tax rates to increase from 15% to 20% for the top tax brackets
- And, an obscure provision will reduce the value of itemized deductions, adding another 1.2% to the long-term capital gains tax rate