One tax expert advises high income clients, such as CEOs, Major League Baseball players and others to start planning immediately to shelter income from supposed higher taxation.
Philip Tortorich, a tax attorney, advises that planning should begin now to consider tax shelters and ways to minimize capital gains.
With the Democratic Party in control of both houses of Congress and Barack Obama to become president, tax hikes are likely for those in the highest bracket. Those who file jointly and have income over $250,000 could see their taxes go back from 33 percent to 36 percent and those filing individual and make more than $200,000 may see taxes go from 35 percent to 39.6 percent, according to Torotich.
If individuals make in the millions, those percentage points add up to a lot more taxes.
But will the increases happen? Obama campaigned on lowering taxes for the vast majority of taxpayers, but raising them for the upper crust. More recently, he's said he'd delay tax hikes for the very rich to help the economy.