Tying up your funds: Tying up your funds into a mortgage may not fit your long-term financial plans, even though you might receive a higher return on your investment and potentially avoid a higher tax rate and the net investment income surtax
If you're taking an IRA distribution beyond the required, you could effectively add to your ordinary income, which increases more of your surtax
eligible investment income and could make you pay more taxes than you thought.
, but also to take advantage of the beneficiaries' lower income tax brackets.
In the case of an individual, the surtax
is (in addition to any other income tax) for each tax year 3.
8 percent surtax
, in addition to other tax obligations.
He said if the town goes for a 3 percent surtax
, there is no guarantee that down the road the state will match it dollar-for-dollar, so that makes the proposal "sketchy" at best.
rates, 6 percent, was applied to all income under $2,000,
3200, approximately $544 billion in revenues would be raised through a surtax
The White House has not expressed a position on the surtax
, but lawmakers said they had heard no objections so far.
Since many of these firms are pass-through entities that pay individual tax rates, they could be hit with a double tax increase (see surtax
In budget legislation announced last May, the Government introduced proposals to (1) reduce the corporate income tax rate from 21 percent to 19 percent over a period of years through 2010 and (2) eliminate the corporate surtax
He then considers similar approaches to other issues, including a consumption surtax
with a very high exemption as a supplement to the personal income tax and a progressive value-added tax, combining conservative preferences for consumption taxes with liberal preferences for progressive taxes.