Preparing for 0bambi Tax Increases
As I have been telling everyone for months, while the election of an avowed Socialist as President would be absolutely terrible for the future of the United States; it is the best thing possible for those of us in the Tax Minimization profession from a purely selfish viewpoint. The upcoming full bore assaults on the ability of people to hold onto their own income and assets will require many more planning strategies than ever before. I am not in the least happy about the results of the election, but we have to find our silver linings wherever we can.
I was checking the info on the TaxCoach website this morning, actually looking for something on the new higher AMT exemptions for 2008. They haven’t yet updated the AMT amounts for the increases that were in the October Bail-Out bill. However, I checked their Client Alerts and noticed they already had one up for the upcoming changes based on yesterday’s election.
Higher Taxes Are Coming. Count on Us to Help!
It's official - Democrat Barack Obama has been elected 44th President of the United States. Back in 1800, Thomas Jefferson called his own election a "revolution" because it marked the first time power passed from one party to the other. This election promises to be more revolutionary than most.
Obama has proposed the most sweeping changes to the Tax Code in a generation. He plans to raise the top marginal rate from 35% back up to 39.6%, as well as raise rates on corporate dividends and capital gains. He plans to impose a new employment tax on earned income above $250,000. And he promises to create new tax credits for college tuition, homeowners who don't itemize, and employers who create new jobs. But who knows how the struggling economy may force him to change plans?
We know you may be worried that the new administration will mean higher taxes. So we're writing to tell you we'll be following all of the new administration's proposals closely to protect you from paying any more than you have to.
We realize there will be no shortage of places where you can learn about coming tax developments, from television news, newspapers and magazines, and the internet. But you can count on us to cut through the hype and clutter, to give you the answers you need for your unique circumstances.
None of these proposals require you to act today. But together they make our tax planning services even more valuable. Call us with your specific questions.