With the ongoing debate about the future of tax rates, we found this chart, from the Financial Times based on IRS data to be very interesting.
With the possible “tax cliff” (sudden increase of tax rates if no congressional changes are made) coming later this year, this graph may be handy to reference as well.
Our thesis remains that as long as we have gradual and unsurprising movement, digestion can occur. Sharp snaps or sudden moves would not be advisable, but the IRS and bureaucrats have not been listening to us lately (ever..haha.)
We would not expect ANY clarity until after the presidential election.
Have a Great Day!