How to Prepare for Higher Taxes
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Financial advisers for wealthy Americans assume that their clients' tax bills are going up. But that's about all they know for sure.
President Barack Obama campaigned on proposals to raise taxes—on income, capital gains, and dividends—on Americans who earn more than $250,000 per year. And in the year since he formulated that platform, the federal government's fiscal situation has gotten more dire, as a result of the recession, stimulus spending, and preexisting debt. On Aug. 25, the Congressional Budget Office raised its estimate of the total deficit from 2010-19 by $2.7 trillion, bringing it to $7.137 trillion. The White House's estimate for the deficit over the next 10 years is $9 trillion.