CHAPTER TEN In the previous chapters , Mar ty used a f lat 25 per cent effect ive tax rat e. In this chapter , we’re goi ng to evaluate wh at would happe n if Marty’s taxes we nt up 30 perce nt whe n the R Rising Taxes By Neil Wilding emember a few chapters ago when Marty analyzed the total taxes he could pay on his IR A in retirement? I have news for him: it could be even worse than he projected. Marty assumed his tax rate stayed the same throughout his working years and retirement. B ut now you know how unlikely that is to occur ! In this chapter , I’ll us e tax rates as a pr oxy for all the different ways Marty’s taxes could go up (remember what Becky said about limited deductions, new taxes, and other stealt hy wa ys you r tax es ca n rise). So what happens if Mar ty’s taxes did go up? Specifically, what if his tax bracket was 30 percent higher, like middle quintil e b racket s were t went y years ago? Dollars and Cents
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