In the early 1960s, the highest marginal tax bracket was over 90%. It wasn't until Ronald Reagan was elected that the sentence was passed… and has been creeping in ever since. Let's also look at real estate taxes portfolio review:-
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When started the business, property tax rates started at 55%, there were no unlimited marriage deductions, and individual loans were only $250,000 in taxable real estate. Completely different from today's property taxes and individual loans.
Here's a quiz for you today: – Although income and property tax rates have changed over the years and are reasonably priced for the American public, what are the constants in this equation? The answer is simple: administration and Congress.
Of course, the faces have changed, but they still control the rules of the game. There is nothing to say that these esteemed ladies and gentlemen cannot take a sharp turn and return to a time of higher taxation.
We need to add another factor to our scenario. What if interest rates go up? Do you think this could put pressure on tax rates to cover interest rates on the national debt? Of course, the government will also need additional new cash infusions.
Uncontrolled Expenditures and Debts. This could mean higher taxes. Perhaps protecting your retirement income will result in some of it being included in plans that offer preferential or non-taxable income.