What happens next year for the 2013 IRS tax brackets promises to be dramatic, since Congress has a big decision to make that will affect us all. They must decide by December 31 whether to extend tax cuts that for the past several years have taken the bite out of taxpayers’ burden. The tax cuts were implemented by George W. Bush and they cut taxes for individual taxpayers.
President Obama wants to extend the Bush-era tax cuts for everyone except the richest people. That means letting the tax cuts expire for taxpayers in the top two tax brackets but keeping them for everyone else. Most Democrats want this, too.
Most Republicans are in favor of extending the tax cuts for everyone, including those in the top two IRS tax brackets.
Congress is not expected to make a decision on the 2013 IRS tax brackets and tax cuts until after Election Day, which falls on November 6, 2012.