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Brought
to you by:
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| McCormick Klessig & Associates
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About Our Firm:
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McCormick-Klessig & Assoc., Ltd. provides individuals, families, small and medium sized businesses with complete coverage of personal and business risks in all product lines: Commercial Personal Life Accidental and Health ( including group products).
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| QUOTES from
the
Masters... |
| On Goals |
On Financial Independence |
"Only
when your memories are more important to you than your goals are you
old."
-– Nido Qubein
"Goals
in writing are dreams with deadlines." -– Brian
Tracy
"We
all need lots of powerful long-range goals to help us past the
short-term
obstacles." -– Jim Rohn
"Big
goals get big results. No goals gets no results or somebody
else's
results." -– Mark
Victor Hansen
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"I
remember saying to my mentor, 'If I had more money, I would have a
better
plan.' He quickly responded, 'I would suggest that if you had a
better
plan, you would have more money.' You see, it's not the amount
that
counts; it's the plan that counts." -- Jim
Rohn
"At
least 80% of millionaires are self-made. That is, they started
with
nothing but ambition and energy, the same way most of us start."
-– Brian
Tracy
"The
philosophy of the rich versus the poor is this: The rich invest their
money
and spend what is left; the poor spend their money and invest what's
left."
– Jim Rohn
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Individual
Income Tax Reductions
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The
2003 Tax Act (Jobs and Growth Tax Relief Reconciliation Act of 2003 -
JGTRRA)
was signed into law by President Bush on May 28, 2003, followed more
recently
by the Working Families Tax Relief Act of 2004 (WFTRA), which was
signed
into law on October 4, 2004.
As
is typical of recent tax legislation, the 2003 and 2004 Tax Acts
offered
tax relief to individuals, but did so through a variety of complex
provisions
that included retroactive, temporary and phased-in/phased-out effective
dates. While some of these provisions may not apply to you, other
provisions will and you may want to revise your planning to take full
benefit
of those provisions.
Today's topic
is the reduction in individual income taxes. If you would like
additional
information on this topic, please call my office.
Accelerated Reduction
in Income Tax Rates
The
reductions in income tax rates in excess of 15% scheduled for 2004 and
2006 were accelerated to 2003, resulting in new
rates of 25%, 28%, 33% and 35% (from 27%,
30%, 35% and 38.6%). These reductions were retroactive
to January 1, 2003, and are
scheduled to remain in effect through 2010,
at which time they are subject to the sunset provision of the Economic
Growth Tax Relief Reconciliation Act of 2001, under which income tax
rates
revert to 15%, 28%, 31%, 36% and 39.6% after 2010.
|
Tax
Years
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Lowest
Bracket
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2nd
Bracket
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3rd
Bracket
|
4th
Bracket
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5th
Bracket
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Highest
Bracket
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2003 -
2010
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10%
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15%
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25%
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28%
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33%
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35%
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2011 and
later
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No 10%
bracket
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15%
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28%
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31%
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36%
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39.6%
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Planning
Note:
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Consider using tax
savings
to fund an IRA, 401(k) or other tax-favored plan. |
Accelerated 10%
Tax Bracket Expansion
The
expansion of the 10% bracket scheduled for 2008 was accelerated by the
2003 Tax Act to apply in 2003 and 2004.
The threshold for the 10% bracket increased from $12,000 of taxable
income
to $14,000 for married couples and from $6,000 to $7,000 for single
taxpayers.
The old, lower thresholds were scheduled to reappear in 2005.
Thanks
to WFTRA, however, the
higher 10% tax
bracket
thresholds have been extended through 2010.
If the provisions of the Economic Growth Tax Relief Reconciliation Act
of 2001 sunset at the end of 2010, the 10% bracket will disappear and
the
lowest tax rate will be 15%.
Prior
to the 2003 Tax Act, tax bracket amounts, other than the 10% bracket,
were
adjusted annually for inflation. The 10% bracket is now also adjusted
for
inflation.
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10%
Tax Bracket Thresholds
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| Filing
Status |
2003
- 2010
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2011
and later
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| Married,
Filing Jointly |
$14,000
($15,650 in
2007)
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No 10%
bracket
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| Single
Taxpayers |
$7,000
($7,825 in 2007)
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No 10%
bracket
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Planning
Note:
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Regardless of your
personal
income tax bracket, the continued expansion of the 10% tax bracket will
benefit you since taxpayers also share in rate cuts in brackets lower
than
their own. For married couples, at least an additional $2,000
will
be taxed at 10% rather than the next higher 15%, resulting in a $100
tax
savings. Single taxpayers receive at least $50 in tax savings
from
the additional $1,000 taxed at 10% instead of 15%. Both figures
are
adjusted annually for inflation. |
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| MESSAGES
from
the Masters... |
THE
SEVEN C's OF SUCCESS by Brian Tracy
After
having studied top achievers and peak performers over the past 25
years,
I've concluded that these unique men and women have, in most cases,
mastered
what I call the Seven C's of Success.
Clarity
- Eighty percent of success comes from being clear on who you
are,
what you believe in and what you want.
Competence
- You can't climb to the next rung on the ladder until you are
excellent
at what you do now.
Constraints
- Eighty percent of all obstacles to success come from within. Find out
what is constraining in you or your company and deal with it
Concentration
- The ability to focus on one thing single-mindedly and see it through
until it's done takes more character than anything else.
Creativity
- Flood your life with ideas from many sources. Creativity needs to be
exercised like a muscle, if you don't use it you'll lose it.
Courage
- Most in demand and least in supply, courage is the willingness to do
the things you know are right
Continuous
learning – Read, at the very least, one book a week on
business to
keep you miles ahead of the competition. And just as you eat and bathe,
organize your time so you spend 30 minutes a day exploring e-mail,
sending
messages, going through web sites, because like exercise, it's the only
way you can keep on top of technology. If you get away from it,
you'll
lose your edge.
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The purpose
of this newsletter
is to provide information of general interest to our clients, potential
clients and other professionals. The information provided is
general
in nature and should not be considered complete information on any
product
or concept described. For more complete information, please
contact
my office at the phone number above.
Quest Capital Stratagies
25231 Paseo de Alicia, Suite 110
Laguana Hills, CA 92653-4615
(800) 527-9989
Member FINRA and SIPC FINRA (formerly NASD) is located at www.finra.org.
SIPC is located at www.sipc.org.
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