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.