By Michael Canet and Carol Schmidlin
In 2001 Congress passed the “Bush Tax Cuts,” officially called the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA). These tax cuts are set to expire at the end of 2012, which would result in significant tax law changes. We have been here before, in 2010, when the original act was due to sunset. At that time, Congress elected to extend most of the original provisions until 2012.
Will Congress extend them again? Who knows? What we do know is that over the years, more and more people will be caught by the new taxes, because the adjusted gross income level that triggers them doesn’t rise with inflation.
That’s why you may want to consider taking steps between now and year-end that could dramatically improve your financial picture – regardless of what Congress does.
The primary effect taxpayers may see increased tax…
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