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Financial Planning / Tax Strategies


Subject:  Re: Tax shelters redux Date:  6/21/2003  3:45 AM
Author:  pmarti Number:  65940 of 127523

I was just thinking about our tax burden and it's out of hand, IMO... My spouse and I earn close to 160k/yr combined.

I'm trying really hard to be sympathetic here, but when I see people supporting families on less than a fifth of your income, it's not easy. Since your goal appears to be more money and less tax, I won't bother suggesting charitable contributions.

The tax laws have been tightened up pretty well so that you can't eat your cake and have it too, like during the good old days of rampant tax shelters that looked like investments but really were just deduction mills. There are lots of scams you can easily find on the Net, but the fact that IRS hasn't caught up with them yet doesn't guarantee that they won't in the future. Besides, you're just throwing money away to save on taxes.

As long as the Republicans control Congress I think you can count on very favorable tax treatment of investment income. They've already got the maximum tax rate on long-term capital gains and dividends down to 15%, which is the marginal rate for a single working stiff who makes more than about $15,000 a year. Add SS and Medicare, and that person is paying 22.65% of his next dollar while you can keep yours down to 15%. So, concentrate on investment income and kwitcherbellyakin.

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