Are Tax Rate Increases In Your Future?

Apr 08, 2015 By Evan Nielsen In Taxation No Comment Tags : , , ,

Not so long ago a once popular President said “read my lips, no new taxes”, then proceeded to raise tax rates. Since the days of the Boston Tea Party, Americans have been frustrated with the tax system and place most of the blame squarely on the shoulders of elected officials. When a politician makes promises, most of the voting public listens with skepticism. Now, a controversial plan has been announced by the Commander in Chief, and it has to do with raising certain tax rates.

A news story recently reported on the President’s plans. The proposal contains the following details:

  • In order to help get a handle on the budget and national debt, the President has been tasked with generating funds through taxes.
  • The President announced he may seek to accomplish this goal through executive orders (which don’t require Congressional approval).
  • Plans like these are typically made through Congress and not the President.
  • Taking action in this way is similar to what the President did when he signed a controversial immigration law, this time around President Obama has asked for research into his ability to impact taxes by executive decree.

Those impacted by the President’s plan would be corporations, which most taxpayers likely feel keeps the Government’s hands out of their pockets. However, another part of the plan does target individuals, by proposing to tax retirement savings. That part of the population that relies on what they’ve been able to squirrel away for retirement could see a drastic change in their lifestyle if this provision were to be implemented. When tax laws change, the chance that the average Joe understands their impact and how to apply them to their individual situation is low. Tax rules are difficult enough to follow as it is, so if a change comes it is smart to partner with a knowledgeable legal tax professional to stay on track. Our team of skilled tax attorneys knows how to help you determine how tax law changes affect you, and how to maximize deductions while minimizing your tax liability.

If you have questions about what you are entitled to deduct, or what credits you are eligible to take when preparing taxes, let the professionals at Nielsen Law Group help you today. Call (480) 888-7111 or submit a web request here. We work with you for satisfactory and timely results.