• Individual income tax rates go from 10%, 15%, 25%, 28%, 33%, and 35% to 15%, 28%, 31%, 36%, and 39.6%.
• Child credit falls from $1,000 per child to $500 per child.
• Capital gains tax rates revert back to 20%, while they are now at 15%.
• Dividends would once again be taxed at the ordinary income rates (top rate is 39.6%), while today they are 15%.
• After being fully phased out for tax year 2010, the estate tax would be fully reinstated with a top rate of 60 percent and a $1 million exemption.
These changes will occur automatically when the Bush tax cuts expire in January 2011. Lawmakers have only a few months to tackle these major tax issues. This is not a Republican issue or a Democrat issue. This is neither a rich man nor a poor man issue. This is an issue that will affect all Americans.
Please get informed and be ready to act in your best interest. Major changes are coming which will affect your bottom line.