I believe that I have read somewhere that the tax calculations are based on current tax law. What does that mean about federal tax rates starting in 2011 when the Bush tax cuts will "sunset" unless the law is changed?
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fmbachman at aol.com wrote:I believe that I have read somewhere that the tax calculations are based on current tax law. What does that mean about federal tax rates starting in 2011 when the Bush tax cuts will "sunset" unless the law is changed?
It means that we currently assume that the various breaks go away and we revert to the status quo ante. We have a good example of that in the 2007 "fix" for the AMT which lasts only one tax year and then reverts (Thanks Congress). This is an extreme case, but the Bush tax cuts are more of the same.
Best,
Dick Munroe