Report: Tax Bill for Wealthy at 30-Year High

9:24 pm Asset Protection, Estate Planning

tax wallet empty 150x150 Report: Tax Bill for Wealthy at 30 Year HighProtecting Assets Should be a Priority for Wealthy Californians

According to an Associated Press report yesterday, the tax bill for wealthy families is at the highest level in more than three decades and California ranks as having the 4th highest state and local taxes in the nation.

The article cites data from the Tax Policy Center that shows American families with incomes in the top 20 percent will pay an average of 27.2 percent of their income in federal taxes in 2013.  The top 1 percent of American households will pay an average of 35.5 percent in federal taxes in 2013.

These tax rates – which include income, estate, payroll and corporate taxes – are the highest since the Congressional Budget Office began tracking this data in 1979.

In California, residents pay 11.2 percent of their income for state and local taxes.  Of the $173 billion the state collects in state and local taxes, residents pay 84.5 percent, the highest rate in the nation.

Creating an estate plan can help you reduce or eliminate estate taxes through a variety of asset protection strategies, including removing assets from your estate, taking advantage of current estate tax exemptions, giving tax-free gifts, establishing trusts or LLCs and more.

Our Newport Beach law firm can help you protect your assets while minimizing your tax burden; contact us for more details.

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