In the July 8 blog entitled "Bush Tax Cuts," I stated that Congress must act to avoid allowing many of the Bush tax cuts to expire in 2011. Congressional inaction will raise taxes across the board (including income tax rates for low and middle income earners).
The the following
article provides that the Treasury Secretary, Timothy Geithner, said "the White House would allow taxes on top earners to increase in 2011 as part of an effort to bring down the U.S. budget deficit. He said the White House plans to extend expiring tax cuts for middle- and lower-income Americans, and expects to undertake a broader revision of the tax code next year."
Although I want to believe Geithner, I don't think Congress will get their act together soon before the cuts expire. However, I think we can expect to see some speeping tax reform some time in 2011, and high incomers ($250,000 +) have a big bullseye on their back.
Plan for the worst, but hope for the best.
