No Relief for the Wealthy – Tax Predictions for the Next Decade
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From the GiftLaw eNewsletter article New Decade Predictions:
“The clear intention of Congress is to start addressing the deficit in 2011 by increasing taxes on upper-income taxpayers. The top brackets are proposed to be returned to 36% and 39.6% in 2011. In addition, the phase-outs known as “PEP” and “Pease” of personal exemptions and a 3% floor on itemized deductions will be restored. Capital gains taxes are likely to be returned to 20%.
The estate tax will also be retained, with a probable top rate of 45%. While the estate exemption is scheduled to return to $1,000,000 in 2011, it is likely to be held at $3.5 million, but could be lowered to the $2 million value that existed from 2006-2008.”
Increasing tax rates and a possible lower estate tax exemption should fuel a renewed interest in charitable planning giving, including charitable remainder trusts.
