Individuals are facing dramatic tax increases in the coming year. Absent congressional action the Bush tax cuts are set to expire at the end of 2010 and return to those in effect during the Clinton administration. The highest individual tax rate will return to 39.6% versus the current top rate of 35% and the other brackets in the rate structure will also return to their former levels. Qualified dividends will once again be taxed at ordinary income rates and long-term capital gains will be subject to a 20% rate instead of the current preferential rate of 15 . . .
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