What Can You Predict for Our Tax Rates in the Future?

What can you predict for our tax rates in the future?  This is a question that I get asked quite a bit.  If you remember, President Obama said in his campaign that he would raise taxes for the rich, and this was defined as those that have taxable income in excess of $250,000.  These are the same folks that are already footing about 65% of the taxes already.  In fact, if you taxed these "rich" people at 100%, it would not solve the trillion dollar annual deficit we are now expected to carry for the forseeable future.  Next thing to consider is that the people making over $250,000 are generally the same people that are providing the jobs.  When they are over taxed, they hire less and make cutbacks.  You can see where I am going here. 

How does this affect future tax rates?  Well, if we cannot get enough taxes from the "rich", and Congress does not cut spending (they have not shown a propensity to do this), then Congress must raise taxes further.  This will mean lowering the bar from the $250,000 level.  My best guess is that Congress will have to raise taxes for those that make $75,000 and above to make any headway on the deficit, and fund current programs.  Thus, your tax planning for the future should consider this as a highly probable event.  Consult with your tax adviser to determine what this means to your individual situation.