Considerations for Taxes in the Near Future
By Carol Schmidlin
The Tax Cuts and Jobs Act changes many provisions for businesses, but in this article, we are going to concentrate on what the (TCJA) did for individuals. It made substantial changes to tax rates and the tax base for the individual income tax.
TAX RATES AND TAX BRACKETS
The Tax Cut and Jobs Act (TCJA) reduced statutory tax rates at almost all levels of taxable income and shifted the thresholds for several income tax brackets. As under prior law, the tax brackets are indexed for inflation but using a different inflation index (see below).
As you compare how the TCJA widened the amount of income that could stay in a lower tax rate, unfortunately the TCJA sunsets in 2025 and expectations are that taxes will either go back up or may increase even more due to the state of our economy.
The Peter G. Peterson Foundation feels like we are on an unsustainable path. They state the National Debt is 34 trillion and growing.
The Social Security Trustees released their annual report on the program’s trust funds, showing that the largest component of the federal is on an unsustainable path. Without reform, the Social Security Trust Funds will soon be deleted and unable to pay full. benefits.
Source: Peter G. Peterson Foundation Social Security Faces Serious Financial Shortfalls, and Other Takeaways from the Trustees Report (pgpf.org)
This article is not meant to scare you but to make you aware we have a problem. You can either (1) complain about it or (2) take proactive action to add protection layers to reduce your future taxes.
I encourage you to look at the websites below:
Resources: