Tax Increases & Greater Economic Uncertainty Lie Ahead For Business Owners. It May Be Time To Diversify Your Assets.
To combat soaring deficits, economists are predicting higher taxes in the coming years1. Unless Congress modifies the sunset provisions of the 2001 Economic Growth and Tax Relief Act and 2003 Jobs and Growth Tax Relief Reconciliation Act, the federal government will impose:
- Income tax rate increases from 33% to 36% and 35% to 39.6% for the top two tax brackets
- Tax rate increases on qualifi ed dividends from 15% to 39.6% for the top tax bracket
- An increase in the federal long-term capital gains tax rate from 15% to 20% for the top tax brackets
All these tax increases will take effect in 2011