Ron Dunn
Old West Realty

Preparing for a Hike

by JP Dahdah

Arizona is known for its wonderful hiking trails but my insight this month has nothing to do with preparing you to hike Camelback Mountain. Instead, I am hoping to help you prepare for the tax hike that Americans are set to experience beginning 2011. Unless Congress does something in the next four months to address the expiring tax cuts that were put in place during the George W. Bush administration, the tax monsoon cometh. This much is certain, Uncle Sam doesn't discriminate, so whether you are a Democrat or a Republican, he wants more money from all of us. Below is a list of some of the tax hikes we can expect come January 1st, 2011.

• The death tax returns at a rate of 55% on estates of $1 million or more
• Personal tax rates will increase as follows: 10% to 15%, 25% to 28%, 28% to 31%, 33% to 36%, and the 35% increases to 39.6%
• Capital gain tax rates are expected to increase 33% from 15% to 20%. Without Congressional action, capital gains could be treated as regular income and will be subject to your top marginal rate...yikes!!!!
• Dividend tax rates are expected to increase by 164%, from 15% to 39.6%