I’m hoping you’ll be doing a happy dance when you file your tax return this year. I usually do – but mostly because it’s done – and not because I’m happy about paying taxes. Does anyone really get excited about paying taxes?
It’s just that this year, the lower tax brackets from the Tax Cuts and Jobs Act were made “permanent.” Layer in possible expanded standard deductions for seniors, a higher SALT cap, and the potential for tax-free tips and overtime. This should please a lot of people.
We’re in historically low tax brackets – especially when we see where the top rates once stood:
Does anyone believe it?
When it comes to taxes, I think it really means “until next time.”
According to Fortune Magazine, The National Debt has reached $309 trillion. That equates to roughly $229,000 per household in the U.S. If those households were to each pay the prevailing interest rate of 3.36% on the debt, they’d be paying an extra $7,700 annually!!!
Let’s not be naive. Our debt crisis needs to be dealt with and tax hikes are the most probable outcome.
So for this year – dance or don’t dance. But perhaps we should be thinking less about deferring taxes and more about positioning yourself for tax-free income later.
I’m happy to review your situation and discuss potential strategies.
Barbara
Feb 15, 2026
Sources:
- https://fortune.com/2026/01/21/federal-debt-per-household-borrowing-crisis/
- Ed Slott and Co., LLC
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