Investment and Tax Strategies for A Changing EnvironmentInvestment and Tax Strategies for A Changing Environment

Brandon Buckingham & Michael Leaser

For decades, the United States had a top marginal tax rate as high as 50, 70 and even 90 percent.¹ As a matter of fact, for the past 50 years there have only been five years (1988 to 1992) when the top marginal tax rate was less than the current 35 percent tax rate. Considering the cost of the stimulus, soaring U.S. government debt, a $3.72 trillion federal budget, a projected record-breaking $1.6 trillion deficit, expiring tax cuts passed in 2001 and 2003, and proposed tax legislation, income tax rates are sure to increase. As a result, every taxpayer will need to consult with their financial and tax advisors to implement investment and tax strategies that benefit from a rising tax environment.

An Uncer...