Op-ed: There’s a potential tax increase coming. Here’s what you need to know

The Tax Cuts and Jobs Act of 2017 (TCJA) brought relief to many Americans, but it’s important to recognize that many of the tax cuts were temporary.

After years of wage growth, the expiration of these temporary cuts could result in higher taxes for many individuals.

Under the old tax brackets, a higher portion of your income would be subject to taxation, potentially leading to increased tax liability.

Furthermore, other tax provisions that were eliminated or capped under the TCJA may not be reinstated.

For example, the once-unlimited state and local tax deduction is now capped at $10,000, which could affect individuals in high-tax states.

The return of these tax breaks and deductions would require action from Congress, but they would come at a significant cost to the federal budget.

This could raise concerns about the government’s ability to address other pressing issues, such as rising national debt.

Additionally, permanent life insurance has emerged as a potential strategy for long-term tax savings and wealth accumulation.

Policyholders can borrow against the policy’s cash surrender value tax-free and repay the loan with the death benefit upon their passing, providing tax-efficient access to funds.

However, it’s essential to consult with a tax advisor to determine the best solutions for your individual financial situation.

By carefully planning and considering all available options, you can mitigate the impact of expiring tax cuts and potentially reduce your overall tax liability.