If the repubs get Congress............I cannot believe rates will increase..........and I cannot envision Obama being able to overcome that-------overtly.    Maybe sour enforcement thru EPA, causing a lot of problems..........but, I would think the pubs would block that with a threat to eliminate the funding, etc etc.

If Democrats hold their own................they are going to have to give a little.........too many candidates have made public statements against "the Old Order"----------so that says that the home boys still have some say over their elected representatives...............so, the "rich" over 250k are going to get hit.............

I think the capital gains tax benefits to smaller incomes-----------15% bracket..........will stay in the 15% bracket....ie the little people.......................but the larger chunks-------say, like selling a farm???---------are going to get hit.........and I would bet 20-25%, since that is going to "hit the idle rich", according to the "let's even the income" crowd.   If the objective is to nail the wealthy, the fair way would be to average the capital gains per the taxpayer's tax returns for several years, somewhat like the current income averaging for farmers.............but that is more than we could expect out of those who do not read the bills anyway.

So...............CARNAC SAYS:    current rates will hold for the indigent..............increased rates for the wealthy...........and higher capital gains for the income commonly associated with the big real estate investors.

How to block it--------------- incorporate................get another tax bracket into which you can transfer income, and yet "hold title to".    (Or, if you have a struggling kid who you can trust to give the money back to you, hire him to do a bunch of contract work, and use his lower bracket to even out the earnings.)

If selling grain this fall.................incorporate NOW, have the corp ready to use NOW.  Talk to your tax guy about a "timely" section 351 transfer of assets, including inventory.

Another-----------if excess cash---------heavy into pensions..........use the simples to get more money into them.  I like pensions...............deductions now, make sure the investments are relatively safe---like CDs, and dribble the income back in after the higher earnings years go by, and age causes the taxable incomes to decline, or, when the cash is not needed so can be used to pay taxes, whatever works for you.

Sec 179 is holding for 2011.............so don't be so eager to buy equipment, unless dealer is giving good deals due to economy-------and I have not had any feed back on that yet.

EDIT

Re-reading says I may not have answered the question---------I think rates for the 100 000 taxable income are going to remain...............with the exception of capital gains.  (I'm thinking of selling a farm this fall, just to ensure the shorter capital gains.)

BUT........at some point, taxes are going to be raised, either in the form of direct income taxes, or in terms of shorter USDA payments, etc etc...............so........I worry more about the next five years than now..........and that is why I bring up the corp and the pensions...................move that income into a pidgeon hole that can still be tapped if necessary, but which stays out of the soup for the next few years.