Act Now or Pay Later: The 2025 Tax Surge Is Coming

Republicans made a strategic gamble in 2017… and it looks like they guessed wrong.

In 2017, Congress had a chance to deliver tax reform for the first time in three decades.

Instead, thin margins and liberal legislators forced Congress to use reconciliation to pass the bill.

While this methodology comes with a simple majority threshold, it also comes with burdensome restrictions.

One is the Byrd Rule, named after former West Virginia Senator Robert Byrd.

It prohibits provisions that would increase the federal deficit beyond a 10-year term unless they were offset by other provisions within the same bill.

Republicans figured it would be harder for Congress to allow individual rather than corporate tax cuts to expire.

So, they made the corporate rates permanent and scheduled to sunset the individual rates in 2025.

Unfortunately, the election map isn’t looking favorable for them in terms of keeping control of the House of Representatives. Plus, common sense seems to be fleeing the Democratic Party in favor of extremism.

It’s all setting up for a tax cliff that, if fallen over, is virtually guaranteed to hit every single American’s pocketbook.

Fortunately, we’re here to help, and there’s two years to plan.

As we dig into the issue below, we URGE you to read retirement expert Bob Carlson’s EXCLUSIVE INSIGHTS so you can capture every single dollar owed to you.

What Exactly Do We Face?

You probably know the 2017 Tax Cut & Jobs Act reduced the individual tax bracket rates.

However, it also increased the standard deduction, which was a HUGE cost saving for the government.

Higher standard deduction amounts meant more individuals would file simple returns rather than itemized ones. Reports from the IRS peg the percentage of itemized filers as dropping from 30% to 10%.

We created a simplified table below that outlines the major changes.

The Cato Institute also has a fantastic chart with all the possible changes available. You can download it in a PDF format HERE.

The Cato Institute estimates that the new tax revenue burden would be $400 billion.

A family of four can expect their taxes to go up anywhere from a couple of thousand to tens of thousands of dollars.

The range is so large because Congress did a lot to simplify the tax code. So, it’s entirely possible you could have saved $1,000 back in 2018, but will end up facing an increase of more than 2-3x that in 2026 because of lifestyle changes and inflation.

Why It’s Unlikely to Be Renewed

You would think that with all their talk of helping folks hit by inflation, Democrats would want more money back in the hands of consumers.

Yet, when they attempt to squeeze more out of the high-net-worth earners, it often hits the poorest among us.

On top of that, our debt is getting to a point that even the most liberal lawmakers are starting to worry.

Now, the right thing to do would be to curtail spending, including entitlement reform.

Yet very few politicians in either party want to touch that with a ten-foot pole — certainly, neither presidential candidate wants to reduce social security or Medicare benefits.

Chances are, through lack of action, our taxes will rise.

Strategies for Combat

Fortunately, we don’t have to sit back and take this.

For starters, you should sit down with your tax planner and look at whether it makes sense to take your profits on your investments early.

This calculus has changed dramatically from what it was even five years ago.

Back then, rates were near zero.

Now, you have to consider the opportunity cost of paying taxes early at the lower rate versus holding that money in a treasury bond.

Generally speaking, with a 4-5% yield on one-year treasuries, it makes more sense to keep the money now instead of trying to save on the tax bracket differential.

No, the real trick is to generate additional income now while tax rates are lower.

Bob Carlson has been advising individuals and businesses on retirement for over 30 years.

And lately, he noticed that how 96% of Americans are missing 11 guaranteed streams of lifetime income.

With over six million retirees struggling just to get by, it’s now more important than ever to secure your financial future.

It’s all part of his latest report called The Retirement Dead Zone.

In it, Bob Carlson explains how you can use the Guaranteed Income Blueprint to fatten your savings and prepare for the inevitable tax hikes coming down the pike.

This is your chance to get ahead of the curve and fortify your hard-earned savings.

Click here to learn more about Bob Carlson’s Retirement Dead Zone.