Taxes are a big expense for most successful people and good tax planning matters a lot. I want this thread to discuss possible changes to the current tax system so we can be aware of these and consider how one might want to plan/adjust for them. For example, changing marginal rates influence many retirement saving strategies, various investments are more or less attractive based on their tax treatment, early retirement is more or less feasible based on your current after-tax savings rate and your future expected retirement tax costs, etc.
There are plenty of political angles here, but to keep from getting into non-constructive political debate, let’s try to focus the political side of this discussion on relevant aspects like
- is this proposal likely to pass or not based on political considerations, or
- what types of compromises might be expected based politics.
As for the kind of things to avoid,
- It goes without saying that any party or politician who proposes raising taxes on you personally is a jerk (and even moreso if they succeed!), so that doesn’t need to be said.
- try not to make arguments about tax “fairness”. Nearly always these come down to “A fair tax law is one that cuts taxes on you by raising them on others”.
The tax code is just a bunch of rules. It doesn’t have morals, intent, or fairness. It doesn’t have to “make sense”. Approach it as an optimization problem rather than mixing in value judgements and hopefully you’ll save yourself a bunch of stress and some money too.
griz EDIT : Here’s a copy of the current framework for your perusal: https://waysandmeansforms.house.gov/uploadedfiles/tax_framework.pdf