Tax increase timing

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PatrickS
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Joined: Sat Feb 24, 2007 6:38 pm
Location: San Diego

Tax increase timing

Post by PatrickS »

Does anyone know if federal tax rate increases always start on Jan 1st? In other words, can we expect no change for 2009 if a plan isn't ready to go and rolled out on the 1st of the year?

I'm one of those "Joe The Plumber" types who's wealth will be spread around. I'm currently using the Roth option in my 401k (for tax treatment diversification rather than assumed tax advantage). I can probably keep my income out of "Joe Plumber" range if I go back to deductible contributions though.
Wagnerjb
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Joined: Mon Feb 19, 2007 8:44 pm
Location: Houston, Texas

Re: Tax increase timing

Post by Wagnerjb »

PatrickS wrote:Does anyone know if federal tax rate increases always start on Jan 1st? In other words, can we expect no change for 2009 if a plan isn't ready to go and rolled out on the 1st of the year?

I'm one of those "Joe The Plumber" types who's wealth will be spread around. I'm currently using the Roth option in my 401k (for tax treatment diversification rather than assumed tax advantage). I can probably keep my income out of "Joe Plumber" range if I go back to deductible contributions though.
My take is that any tax changes made by the new administration will come early in the year and be retroactive to January 1st. I don't think it is safe to assume that the law as of January 1st will remain so all year.

Best wishes.
Andy
Alex Frakt
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Post by Alex Frakt »

Increases usually start the next tax year, but they can certainly make them retroactive to the start of the current year.

I'm going to have to lock this, we don't allow either political posts or speculating on government policies.
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