09/06/2010 - Uncertainty on Capitol Hill is making everyone’s life miserable. Congress’s inability to decide on what to do about the expiring Bush-era tax cuts means that we probably won’t know what will happen to next year’s tax rates until after the November elections. In the meantime, review your options so that you’ll be ready to act once Congress does. We’ll help you decide what’s appropriate for you, depending on your income, under a variety of scenarios.
Congressional Republicans argue that current tax rates should be extended for everyone, noting that many of the taxpayers targeted for tax hikes are small-business owners and that higher taxes on them could derail the economic recovery. (The White House is pondering a package of small-business tax breaks to address some of those concerns.) Extending the current tax rates for all taxpayers would cost $3.3 trillion over the next ten years, compared with $2.2 trillion if they were extended for all but the rich, according to the Pew Economic Policy Group.
To read the entire article What Will Congress Do to Your Taxes? on the Kiplinger Web site.