In 2011, the ten year Bush tax cuts will phase out. Currently there are Congressional efforts to keep the cuts, but there are also efforts to raise additional tax revenue. In the end, the cuts will probably expire. Thus in 2011, the following will probably occur:

■ Income Rates: the 36% and 39.6% tax brackets will be reinstated for married filers making more than $250k and singles making more than $200k;

■ Capital Gains: for taxpayers above the 28% income bracket, the capital gains rate will increase from 15% to 20%;

■ High Income: other credits and deductions may be phased out across higher income levels.

As pressures mount to balance the federal budget, Congress could look to reinstate higher progressive income tax schedules. Rates could hit 50% for those with the highest adjusted gross incomes.