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(BPT) - The close of every year seems to bring its own uncertainty from a tax-planning perspective. Last year featured the expiration of certain temporary tax provisions and the commencement of automatic federal government spending cuts. In October the President and Congress temporarily agreed on funding the government and increasing the national debt limit. But these issues may reappear in 2014 and could result in tax law changes that affect income-tax and financial planning. For now, the best approach is to focus on how to limit your exposure to the many new or increased taxes in 2013 and beyond. 1. Manage higher taxes Many taxpayers will be faced with higher tax bills in 2013 as a result of: * The temporary reduction in the Social Security tax from 6.2 percent to 4.2 percent that expired at the end of 2012. This means an increase of $2,000 in taxes for $100,000 of wages. * The tax rate on wage income that increased from 35 percent in 2012 to 40.5 percent in...
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