Tactics For The New Tax Hikes

If you haven't yet figured out whether you will owe more income taxes under President Clinton's new budget, try looking at it this way: If you and your spouse do not make at least $180,000 a year, you don't have to worry about higher rates. The new 36% levy kicks in at $140,000 of "taxable income" for couples--that's minus about $40,000 in deductions and exemptions that folks at these levels can usually subtract. To reach the top stated marginal rate of 39.6% at $250,000 in taxable income, you would probably have to earn over $300,000 a year.

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