Going, Going, Going...

Physician's Money Digest, September30 2004, Volume 11, Issue 18

Even if President George W. Bush winsa second term in November 2004, the fateof his tax cuts may well ride on whetherthe Republicans can maintain a majorityin the US Senate. Among the tax breaksthat are scheduled to fade into the sunsetunless Congress acts is the reduction ofthe top tax rate to 35%. In 2011, those inthe top tax bracket will go back to payingthe old rate of 39.6%. The capital gainstax rate will revert to 20% from its current15% in 2009, the same year that thetax rate on dividends, currently 15%, willbe pegged at the taxpayer's marginal taxrate, up to a maximum of 35%. After ayear of complete repeal in 2010, the estatetax will make a comeback in 2011, withthe exemption reverting to $1 million andthe tax rate back up to 55%.