Do you see any prospect at all for compromise on this, especially on the extension of the upper-bracket tax cut, perhaps a limited time or something like that?
Finally, we looked at alternative scenarios of the costs of renting versus buying , by changing the mortgage rate, the income tax bracket for tax deductions, and the time horizon.
S. would create a new tax bracket for the highest 1 percent of income and calculate a marginal income tax rate for that bracket sufficient to reduce the after-tax Brandeis ratio to 36.
After all, for those in the top tax bracket, the tax would increase by a whopping 24 .6%.
If that wad was in a 401(k) plan and, hypothetically, you withdraw it all at once, you would land in the 39% tax bracket under current tax laws.
If you are in the 25 percent tax bracket, your effective tax rate would be 62.5 percent (2.5 times 25 percent)!
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However, most tools will use the marginal rate of your highest tax bracket rather than your effective tax rate.
While the employee is in the 25% tax bracket, the federal income tax burden is really 17%, which is still a significant burden.
It leads to tax bracket creep for individuals increasing their tax rates in addition to the total tax amount.
The top-bracket federal tax rate has climbed since 1988 and, what with fiscal pressures from Medicare and the military, it may be higher still in 15 or 30 years.
Households in the 15 percent tax bracket and below will see their tax on capital gains go from zero to 10 percent and their tax on dividends will rise from zero to 15 percent.
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While the write-off would make no difference to a tax-exempt investor, a taxable investor in the 30% tax bracket would get an after-tax income stream comparable to another REIT yielding 7.14%, a substantial difference.
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Many respondents said they were below the top tax bracket, held their investments mostly in tax-deferred accounts or were long-term investors.
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Capital gain rates are set to increase from 15% to ordinary income tax rates as high as 43.4% if you are in the top tax bracket and factor in the new Medicare tax on unearned income.
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Beginning Jan. 1, 2008, taxpayers whose income is low enough to keep them in the 10% or 15% ordinary income tax bracket, will pay a 0% tax rate on gains from the sale of stocks, funds and some other assets (such as a vacation home) they've held a year or more.
Politicians in Annapolis created a millionaire tax bracket, raising the top marginal income-tax rate to 6.25%.
Besides the tax bracket problem, folks in states with retiree tax breaks might lose out on a year of substantial tax savings.
But many are also in a very low tax bracket, nullifying the supposed benefit of the tax-free status of muni bonds or the tax-deferral of fixed annuities.
Moreover, the MID is more valuable to itemizing taxpayers in the highest tax bracket than to middle-income taxpayers in lower tax brackets.
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The top income tax bracket is 13.3 percent and its sales tax can be as high as 10.75 percent in certain cities.
Consider annuities if you (a) are in a high tax bracket (b) have exhausted other forms of tax-favored retirement savings, like 401(k)s and IRAs and (c) want to own more bonds, especially corporate bonds.
The group has argued that that corporate taxes, payroll taxes and so-called "bracket creep"--where taxpayers are bumped into a higher tax bracket because of inflation--are all examples of hidden taxes.
Take someone in the 25% federal income tax bracket, facing a 15.3% (FICA) payroll tax and a 9.3% California income tax.
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And the investment growth is taxed at their income tax bracket, which for most is higher than the 15% capital gains tax rate.
Bush also adopted a new lower tax bracket for the lowest income workers of 10%, reducing their federal income tax rate by 33%.
Going back to my stated goal of being in a high tax bracket, one of the strangest stories of taxation is the variability of top income tax rates over the years.
If the investor is in the 35 percent marginal tax bracket, then to get the same income from an equally risky bond that is not tax-free would require a gross yield of 3 percent per year.
If the payer is in a higher tax bracket than the payee, characterizing payments as alimony can be a win-win, provided the net tax savings are shared.
In return, the top individual income top tax bracket would be reduced from its current 35% to 28% the level set in the 1986 tax reform.
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The conventional approach is to compare your current tax bracket with what you think it will be in retirement, which would depend on your taxable income and the tax rates in place when you retire.
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