With Congress stuck in tax gridlock, even simple tax legislation is bogged down…Taxpayers trying to figure out their tax planning for this year and beyond is perplexing.
Are tax rates definitely rising in 2011? No. President Obama’s plan to end the Bush tax cuts for higher income filers is not a slam dunk to pass.Recently, several Democrats have said they are leery of raising income tax rates while the economy is weak.The discord in the Democratic ranks means action on the tax cut extensions will be delayed…possibly until after the elections.
That means not much tme for a rancorous Congressional debate on taxes. Maybe lawmakers will continue the Bush tax cuts for everyone in 2011…the 35% top rate on income and the 15% rate ceiling on capital gains and dividends.
I’ll keep you posted