What if there are no new law changes before 2026 ? Why does it matter ?
TCJA added several lower tax rate brackets and increased the amount of taxable income subject to each bracket . Unless made permanent , these changes will revert to the 2017 rates and income brackets
For example , the top federal individual tax rate will revert from the current rate of 37 % for taxable income over $ 647,850 to the 2017 top rate of 39.6 % for taxable income over $ 470,700
Net after-tax income will likely decline – and without inflation in check the impact will most likely be worse