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That's not all bad. A prosperous economy leads to more personal income, which shoves more taxpayers into higher tax brackets, so they owe more in taxes. Thus the taxpayer burden may grow faster than income, and taxpayers still get ahead. That's the way our progressive tax system works: the more you make, the higher your tax rate. But it is one of the hidden ways taxes are on the rise. Here are some others, and what to do about them...

Author: /time Magazine | Title: Stealth Tax Hikes | 1/11/1999 | See Source »

Alternative minimum tax. Designed to afflict only the superrich, this monster increasingly soaks the middle class. More than 1 million taxpayers will owe it this year, and 9 million by 2008--including many earning considerably less than $100,000 a year. Little more than a decade ago, fewer than 100,000 people were subject to the AMT. It's a complicated tax that targets folks who avoid most traditional income taxes through large credits and deductions. High earners in high-tax states are most vulnerable, but anyone taking a large deduction for business expenses can fall victim. Tip: consult...

Author: /time Magazine | Title: Stealth Tax Hikes | 1/11/1999 | See Source »

Mutual fund taxes. Heaping insult on injury, many investors owe 1998 tax on capital gains recorded by their mutual funds, even if those funds lost money. More than 30% of stock funds were down through November, and 11% of those--including such popular funds as Heartland Value, Lindner Dividend, Brandywine and Templeton Growth--also distributed a taxable capital gain to shareholders, says fund-research company Wiesenberger. Tip: taxable distributions typically result from rapid-fire trading. This year, look for funds with a low turnover rate, something less than 100%. Stock index funds are among the most tax efficient. And never...

Author: /time Magazine | Title: Stealth Tax Hikes | 1/11/1999 | See Source »

...influence of Cubist painting and theory. From the tunics of Callot Soeurs to the cylindrical day dresses of Vionnet to the drop-waist skirts of Chanel in the 1920s, fashion's deflation followed the Cubist embrace of the plane. In other words, liberated from corsets, women everywhere owe a thank-you to Picasso and Braque...

Author: /time Magazine | Title: Cubism And Fashion | 1/11/1999 | See Source »

...pleased to see a mention of my former boss, Muriel ("Mickie") Siebert, in your Builders and Titans report. All professional women owe Siebert, the first woman to buy a seat on the New York Stock Exchange, a debt of gratitude. Were it not for her tenacity, gumption and drive, we'd still be searching for the ladies' room at the exchange. AVA SLOANE Hoboken...

Author: /time Magazine | Title: Letters: Jan. 11, 1999 | 1/11/1999 | See Source »

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