Democrats tax increases to offset $3.5 trillion spending bill
CHATTANOOGA, Tennessee (WDEF) – “Anybody who’s going to have a long-term income of $75-$80,000 and up, taxes may increase for you at some point. We just don’t know when and we don’t know how much,” said John Vandergriff from Blue Ridge Wealth Planners.
Vandergriff said the changes would impact corporate and individual tax rates. The corporate tax rate would jump to 26 and a half percent from its current 21 percent.
“The top tax bracket for married people started about $650,000. They’re dropping that down to $450,000 and increasing the percentage. That should signal for all of us as a sign that we are migrating towards tax increase and the sad reality is there’s probably just not enough of those high-income people to get everything done that needs fixing in Washington unfortunately,” said Vandergriff.
He said these are just proposed changes and expected to evolve as both Republicans and Democrats work together. However, if a compromise isn’t reached by October 1, we could see a government shutdown,” said Vandergriff.
“The people in Washington get the pressure from everybody else saying how you figure out your stuff and get back to work. We didn’t elect you to be here and fight with each other. We elected you to do the business of the country,” said Vandergriff.
Vandergriff said tax decisions now can impact you years down the road in retirement.
“We also need to look at the diversification types of accounts. If we have all of our money inside of a 401(k) or an IRA we are 100% by one tax changes happen with income tax. Whereas if we have after-tax money we need to pay more attention to capital gains or if we invest our money and Roth types of accounts that grow tax-free they were kind of insulated from tax changes,” said Vandergriff.