New Tax Rates Create Planning Opportunities
Investor's Business Daily (06/29/01) Vol. 32, No. 6 p.B9; Weiss, Stuart

There are several ways taxpayers can save money under the new tax law. Tom Oshenschlager with Grant Thornton LLP says people with three or more children should be able to earn a sizeable amount in tax savings. The new 10 percent tax rate for parents should help in this area. Single taxpayers with taxable income below $6,000 pay federal tax at 10 percent, down from 15 percent last year. Another key change to the tax law is that tax rates were cut retroactive to January 1, thus making it advantageous for taxpayers to defer income into future years. So, for example, if someone was in the top tax bracket (39.6 percent) in 2000, then they would be in the 39.1 percent bracket this year. Under the new tax law, the top bracket will fall to 35 percent by 2006.


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