A Bird’s Eye View of Today’s Tax Rates
“In this world nothing can be said to be certain except death and taxes” – Benjamin Franklin.
HERE’S A SNAPSHOT OF HISTORICAL TAX RATES
You can compare 2020’s highest marginal income tax rate to years dating back to 1913. Although this chart is not an all-inclusive story about someone’s individual tax situation, it does suggest that overall tax rates are lower today than they have been in the recent past.
How to Take Advantage
The current tax rates are locked until December 31, 2025, unless there is an update to the Tax Cuts and Jobs Act (TCJA). Without a crystal ball, we do not know where tax rates are heading. However, as this image illustrates, we do know tax rates can increase in the future.
One way to take advantage of today’s low tax rates is to utilize accounts like a Roth IRA or saving Roth inside your 401k plan.
Do you have questions?
We know that interpreting the tax code is an unpleasant and complicated experience. We have a team of CPA’s at Human Investing who are ready to answer any questions you may have.
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