Florida Estate Planning: What The End of the Bush Tax Cuts Could Mean for You
Deloitte Tax LLP released come figures last week that delineate what could happen if the Bush tax cuts expire at the end of 2010:
Tax increase of $2,900 a year for a family of four with a household income of $50,000;
Tax increase of $4,500 annually for a family of four with a household income of $100,000;
Tax increase of $10,800 a year for a family of four with a household income of $500,000;
Tax increase of $53,200 annually for a family of four with a household income of $1 million.
In addition, long-term capital gains taxes would go from 15 percent to 20 percent and the child tax credit would drop to $500 from $1,000.
The White House wants to extend the cuts -- but only for family households making less than $250,000 a year and individual households making less than $200,000. Obama administration economists say only two percent of the population will be affected – and those are the richest two percent in the U.S.
Republicans wants to extend the tax cuts and have introduced what they call a “Pledge to America” to cut taxes and control government spending. And, as a surprise to no one, the Senate has delayed its vote on extending the tax cuts until after the November election.
Whichever way the votes go, you should elect to consult with our Jacksonville estate planning law firm about asset protection and wealth preservation.
