Safe Money and the Plain Truth

Why the financial services industry is stacked against the American Retiree

Tax Increases…Change You Can Count on!!

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This was posted by my friend, Pamela Yellen over on her blog  just a couple of days ago,  I thought it was right on so I’ve put it on my site to share with you. 

Did you know that the U.S. income tax was first instituted in 1913?

1913 Form 1040 Tax Return

1913 Form 1040 Tax Return

I recently came across a copy of the very first IRS Income Tax Form 1040 our forefathers were required to file and wanted to share it with you.

But BEFORE I show you the rest of it, take a guess at the answers to these four questions:

  1. What percentage of taxable income do you think the average family paid back then?
  2. What was the top percentage paid by the very wealthiest Americans?
  3. How many pages long do you think that first tax return was?
  4. How many pages were the instructions needed to complete the form?

The answers to these questions may shock you!

Did you take your best guess at the answers?

Now take a look at how close you came to the correct answers here.

What direction do you think taxes will go long-term?

Most people I’ve talked to say that’s a no-brainer- they’re going to go up.

Many people love the ability to tax-defer income that comes with IRA’s and 401(k)s. But they forget that if you’re successful building your savings in one of those plans, you’re probably just going to end up paying higher taxes on a bigger number!

That’s why it is so important to explore alternatives to funding your retirement with dollars that won’t be included in your income tax calculation. 

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Written by brantleyw

September 21, 2009 at 1:27 pm

Posted in Uncategorized

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