Middle-Class Taxpayers May Have Skirted The Worst Tax Increases Now But Tax Creep Will Make Them Subject If Two Stealth Taxes Are Left Intact Hot

0.0 (0)
Write Review
Just like the AMT, the threshold will creep down to middle-class earners over time if it is not indexed to inflation.
The other tax middle-classers will become subject to is the 50% income tax on Social Security benefits.
Twenty years ago, the threshold for paying this tax was pretty high, subjecting only about 15% of taxpayers.
Today, that percentage is more like 35%. Incomes have risen significantly since 1984 when the original thresholds of $25,000 for single taxpayers and $32,000 for married taxpayers were set.
If neither of these tax thresholds become indexed to inflation, they will become an additional tax sweep over taxpayers who were never intended to become subject to them.

It's a good idea to begin talking to your clients now and adjusting their investment strategies to prepare for this possibility down the road.

This Website Is For Financial Professionals Only

User reviews and Comments

There are no user reviews/comments for this listing.
Already have an account? or Create an account