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Obama’s New Tax Plan: 2014 Marks Beginning of Tax Increases for Everyone

Obama’s New Tax Plan: 2014 Marks Beginning of Tax Increases for Everyone

Tax season 2013 is a thing of the past, but many have begun to worry about what the future holds for 2014 and beyond. The question that often haunts taxpayers: Will my taxes go up? The answer is: Yes, and high-income households will likely bear the brunt of it. According to Howard Gleckman, contributor of Forbes.com, President Obama’s 2014 budget is responsible for the future spike.

In contrast to Obama’s pledge, it was reported that individuals and couples with an average household income of $200,000 and $250,000, respectively, would also pay a little more than previous years. Households in the $100,000 to $200,000 bracket would see a $150 added to their existing tax amount. And middle-income households ($50,000-$70,000) will see their taxes increase by up to $60 come 2015.

As mentioned, high-income households of $1 million or more will carry most of the weight. The new tax plans entails an average of $83,000 spike in their taxes, along with limitations on itemized deductions. Reportedly, by 2023, taxes would have increased by an estimated $1 trillion with households of $200,000 to $1 million and over paying the most.

According to analysts, everyone’s taxes will go up, regardless of individual or household income.

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For financial guidance in legitimate tax documentation and preparation for next tax season, contact our expert CPAs in McAllen of Gonzalez & Arrambide, Inc. at 956-447-9009.

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