Kicking around Washington
“To retain respect for sausages and laws, one must not watch them in the making.
Otto von Bismarck
Here are some ideas the Obama team is kicking around Washington these days.
- Tax relief for middle incomers which could included, expanding the earned income tax credit, exempting seniors from income tax with incomes less than $50,000, reducing employee’s payroll taxes.
- Increase in tax rates for high earners. Adjusted Gross Income for Singles at $200,000 and married persons above $250,000. (Another example of why 2 single people can have a bigger tax break than a married couple).
- Capital gains and dividends will rise to 20%. (Still a bargain compared to recent history).
- Ending LIFO inventory along with the domestic production deduction.
- Taxing S-corp owner and limited partner distributions as self-employment income. (Ouch! This cuts a little into the tax planning).
Talk to your tax advisor before making any moves.We’re here to help.