Tax-Free Investments Can Boost After-Tax Income
The piece explains how tax free investments, though often yielding less, can deliver more spendable income after taxes. It compares after tax results for a 28 percent bracket, showing 5.5 percent tax free bonds equaling a higher 7.64 percent taxable yield, due to no federal tax on interest.
Growth Stocks Boost From Tax Act of 1993
The Tax Act of 1993 raised top ordinary income tax to 39.6 percent, boosting growth stock appeal through lower long term capital gains taxes at 28 percent. Buy and hold strategies defer taxes, amplifying after tax wealth over 10, 20, and 30 years. Investors are urged to consult professionals before tax related moves.
Tax Free Investments for 1995 Tax Bill Relief
Taxpayers face higher 1993 Act taxes and are urged to diversify into tax free investments. Municipal bonds pay semiannual interest tax free and mature at original investment. Units trusts and mutual funds offer tax free income with professional selection and possible insurance.
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