Medicare and Regular Tax Increases will apply to Tribal Per Capita Distributions

The Medicare tax increases combined with regular tax increases will apply to Per Capita Distributions. Congress now has a surtax of 3.8% on Per Capita for many higher Per Capita Tribal members. Tax rates are going up and will jump to 43.4% in 2013 from 39.6% in 2011 from 35% in 2010. This is a 24% increase.

These higher rates combined with higher State taxes, such as in CA, will mean an increase for many Tribal members taxes in excess of 50% if living off of the reservation!

Capital Gains taxes will also increase to 23.8% in 2013 from 20% in 2011 from 15% in 2010. This is a 58% increase!

There will be State taxes on top of these rates if living off the reservation.

Bottom line, for higher earning Tribal members that receive Per Capita Distributions you need to implement a Generation 7 Deferred Income Tax Per Capita Plan. With your Gen 7 plan, your Per Capita that you put away is not currently taxed. Click on www.generation7llc.com or 877-218-7800 toll –free for more information.