Will Taxes Decrease or Increase in the Future?

.Taxes

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Tax Thresholds High and Low 1913 till 2013

Marginal Tax Rates from 1913 to 2009 - Minimmum and Maximum

 Taxes are just one example of how things change constantly.

When asked what the highest marginal tax bracket in this country has ever been, most people have no idea.
The highest marginal tax bracket we’ve ever had in this country is 94%! Now that doesn’t mean that if you made $100,000 you had to pay $94,000 in taxes. What it means is that some portion of your income above a specified level would be taxed at 94%.

As you can see from this graph income taxes have gone up and down many times depending on what the economy was doing and how much money the government needed. In 1917 the government significantly increased taxes to fund our military needs for WWI. In the early 1930’s and 40’s the government raised taxes again because of the Great Depression and WWII. One thing we can count on is that when the government needs money it will increase taxes.

In the 80’s and early 90’s, tax brackets were substantially reduced from previous levels. But what most people don’t remember is that in order to drop tax brackets but still receive its desired revenue, the government needed to eliminate some tax deductions.
Prior to those tax law changes you could deduct the interest you paid on car and truck loans, even the interest on your credit cards. The elimination of those deductions ended up directly affecting the middle class by actually increasing their tax burden.

Given the current market and economic conditions in this country where do you think taxes are going?

If you believe that your taxes in the future are going to be higher, and that you might have fewer deductions to offset those taxes, doesn’t it make sense that you begin planning today to implement financial strategies that could substantially reduce your future taxes or in some cases eliminate them entirely?

If you do believe that, call me now, Jennifer Hansen 845-649-7487

Looking at the image below we see tax deferred growth can increase your wealth substantially, that is until you have to access your money.  That benefit could be lost in the future if taxes have increased. Unless you can have access to those dollars in a tax free setting as well as have them grow tax deferred you may be actually losing money. How can you do that? Ask me today.

Taxable vs Tax Deferred

Impact of Taxes

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December 3, 2014 · Jennifer · No Comments
Posted in: Uncategorized

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