There is no right or wrong time to increase taxes but Congress is getting ready to get-er-started in 2010. The following table is not carved into stone but a possibility of what increases are in store for all of us. 
Congress appears to be getting ready to make the American citizen pay more this year with a bevy of new taxes. First to feel the hit will be the top two tax brackets with the highest earners.
According to Barrons Sunday June 20th the income tax brackets will also be increased with the disappearance of the 10% bracket to 15% and increasing the 25% to 28%, 28% to 31%, 33% to 36% and 25% to 39.6%.
If Congress cannot raise enough taxes to reduce the deficit it may do what other countries have already enacted and that is a Value Added Tax or VAT, which is nothing more then a Federal sales tax. A 5% VAT could raise, according to the Tax Policy Center, as much as $3.3 trillion dollars by 2019.
Clients are suggested to call their tax advisor and begin planning on ways to reducing future tax increases. This is not going to go away.
If you have questions about this blog call Paul at 877 783 7080 or write pstanley@westminsterfinancial.com. Share this blog with someone who cares about their money.
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