By JLP | July 13, 2009
I’ve been doing a little reading lately about the taxes. As we all know, the Bush tax cuts expire after 2010. There is talk about leaving the tax cuts alone for the lower brackets but bringing back the 36% and 39.6% tax brackets for taxable incomes of $250,000 and above. Based on that information, I took the 2009 federal income tax brackets for married filing jointly (MFJ), which look like this:
I took those numbers, added the new tax brackets, added a 3% inflation adjustment (for two years) to the brackets, and this is what I came up with:
In addition to the new tax brackets, there’s also talk of…
• a surtax of 1% for families who make over $250,000, 2% for families who make over $500,000, and 3% for incomes over $1,000,000. These rates could double in 2013.
• limiting itemized deductions to 28% for incomes over $250,000.
• the possibility of the 1.45% medicare tax being added to dividends.
Did I miss anything? If so, leave a comment and I’ll add it to the list of possible changes.
Although these numbers are pure speculation, I did base them on things I have read (mostly the Wall Street Journal).