美国新的和老的减税政策

The new tax law signed in mid-December is a big plus for investors and earners alike. Designed to boost the economy, it mostly involves the continuation of favored tax rates that would have gone up in 2011, while also providing some new ones.

By one estimate, taxpayers will save some $3,000 on average in 2011. Many families will save much more, $10,000-plus in some cases. Most of the tax cuts that were set to expire are extended for two years, with others through 2011 only.

The law extends the Bush-era income-tax rates for two years. This is very positive for investors because it keeps the top rate on long-term capital gains and dividend income at the current 15% instead of boosting it to 20% for capital gains and 39.6% for dividends. This enhances the appeal of equities, which is one of many reasons to be bullish on stocks.

In addition, the top two income-tax rates on earned income will continue at 33% and 35% instead of climbing to 36% and 39.6%.

A new break helps all earners. The Social Security payroll tax will be cut from 6.2% to 4.2% for 2011 only. The tax savings per worker will vary with income, but they can reach as high as $2,136 for those earning at least $106,800, the maximum amount subject to Social Security tax.

The alternative minimum tax will be fixed for 2010 (retroactively) and 2011. Originally designed to target the “rich,” it will spare an estimated 20 million taxpayers from potentially significant additional federal tax.

There’s also a two-year repeal of the deduction limits that functioned as another “back-door” tax increase for many affluent taxpayers. One provision cut itemized deductions by 3% for incomes above a threshold. Another reduced the value of the personal exemption. Both are gone for now.

The new estate-tax situation is a plus too. As of 2011, a person who dies can leave up to $5 million to heirs free of federal estate tax. After that, it’s taxed at a top rate of 35%.

The old estate-tax rules ended in 2009, and there was no tax in 2010. The estate-tax exemption was scheduled to drop to $1 million per person next year, with a 55% top rate.

The tax bill also brought back a provision that expired at the end of 2009 allowing tax-free charitable donations of Individual Retirement Account assets for taxpayers 70-1/2 and older. The benefit has been extended through 2011.

You can make gifts from your IRA to a qualified charity through January 2011 and still qualify for 2010 payout contributions.

You can use your required minimum distribution for the contribution. You get no deduction. But you also don’t have to report the otherwise taxable payout as income. Since the donation bypasses tax calculations, you avoid the risk of a limited write-off or of increased taxable income that could boost your Medicare premiums or taxes on Social Security payments.

With all of its immediate benefits, the new tax law carries big drawbacks. It further increases the deficit without real investment in our economy. And we now, in effect, have a temporary tax code. It’s time to start cutting the deficit and revamping the tax code to make it more simple and “permanent.”

（from Dr. Stephen Leeb's e-mail）