We may be overly concerned about Taxes
It appears at the end of 2012 that 98% or 99% of us will not receive an increase in income taxes in 2013, or if no agreement is reached now, a deal will be struck sometime in the first half of 2013 which will retain the Bush tax cuts for the 98% or 99% of us.
Most people have not seen the actual difference in the tax tables. For what it’s worth, here they are. For many, the difference is 3% to 5%, not an earth-shattering amount, but a significant amount for those living paycheck to paycheck. Remember that if your taxable income is $150,000, you only pay 28% on the $7,300 which exceeds $142,700.
So the increase is not as severe as it looks at first glance.
|Taxable Income||Bush Tax Cuts||With Repeal|
|$0 – $17,400||10%||15%|
|$17,400 – $59,000||15%||15%|
|$59,000 – $70,700||15%||28%|
|$70,700 – $142,700||25%||28%|
|$142,700 – $217,450||28%||31%|
|$217,400 – $240,800||33%||36%|
|$240,800 – $388,350||33%||36%|
|$388,500 and Up||35%||39.6%|
|Standard Deduction||$ 11,900||$ 9,950|
|Personal Exemption||$ 3,800||$ 3,800|
Sometimes we become overly concerned about change, and most of the time, our lives go on pretty much the same as before. So If you were considering long term care planning, there’s little reason to change your thinking. We urge you to put a plan in place as soon as possible. The sooner you start the more you will save.
Louis H. Brownstone is the Chairman of Northstar Network Insurance Agency, Inc. and a certified in Long Term Care specialist. Louis is recognized as an industry leader, with articles appearing frequently in California Broker Magazine and other industry publications and events. Read More