I understand that ESP uses current tax rates thru 2010, then uses the higher rates that will go into effect if the Bush tax cuts are not extended. So ESP already assumes higher future rates?
Please confirm.
Lynn Grubb
Disclaimer: ESPlannerBASIC, ESPlanner, ESPlannerPLUS and ESPlannerPRO, are educational calculators designed to give users input in mapping out financial futures, but should not be acted upon as a complete financial plan. The creators of these programs are not certified, registered, authorized, or any other type of financial planners. These programs are simply tools for helping you think through economic futures. Its "recommendations" should be viewed as informative inputs into your own decision-making with respect to saving and the purchase of life insurance. ESPlannerBASIC, ESPlanner, ESPlannerPLUS and ESPlannerPRO provide neither economic, financial nor tax advice, which can only be delivered to you by authorized professionals.
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lynnsgrubb at aol.com wrote:I understand that ESP uses current tax rates thru 2010, then uses the higher rates that will go into effect if the Bush tax cuts are not extended. So ESP already assumes higher future rates?
Please confirm.
Lynn Grubb
Correct. Until the law changes, the Bush tax cuts are temporary and sunset in 2010.
Best,
Dick Munroe
Version 2.13.1 has updated the federal taxes. Since the tax tables are indexed to inflation, do you get this data from the IRS for future years? If not, what assumptions do you make for indexing the tax brackets? What happens if inflation is negative? Same questions for state taxes please.
Thanks
James