A Look at Tax Law Over the Last Decade
The last decade has been filled with financial ups and downs, as well as a bevy of tax law changes. Some of the highlights of the last ten years include:
George W. Bush Tax Cuts:
The provisions of George W. Bush's 2001 Economic Growth and Tax Relief Reconciliation Act have been phased in over the course of the last decade. Key points of the legislation included adding a ten percent tax bracket, broadening the fifteen percent bracket, which eased the "marriage penalty," and gradually lowering the top tax rate to thirty-five percent. It also increased the child tax credit, cut capital gains taxes, and phased out the estate tax. But all of these changes are only temporary; unless congress acts to extend the changes, taxes will revert to 2000 levels on January 1st, 2011.
Tax Rebates:
Rebates were paid under the Bush administration in 2001, 2003 and 2008. The Obama administration has continued the trend, doling out Make Work Pay credits and mailing rebate checks to retirees.
Congress Acting Late:
Last minute tax law changes have kept the American tax payer and the IRS on their toes, often causing forms to be printed and reprinted as the filing deadline approaches. Most recently the Congress failed to extend the estate tax, meaning that it will either be enacted retroactively or not at all.
Crackdowns on Tax Evasion:
Tax evaders who were hiding money in offshore accounts came under greater scrutiny in 2009, when the US struck a deal with Swiss banking officials to cooperate with the IRS. At the same time the IRS offered amnesty to those coming forward on their own, which resulted in nearly fifteen thousand offshore account holders turning themselves in.
Read more interesting tax tidbits from the last ten years at A look back at the decade in taxes.
If you live in the Jacksonville, Florida area and require assistance with tax planning, please contact our firm for tax planning legal counsel.
