Component 3: NYL Tax diversification

Where do you think tax rates are headed next?

Income tax rates are currently near historic lows— but with the national debt at historic highs, it follows that tax rates may need to rise in the future to address this situation.So how can you prepare your retirement plan for this uncertainty?

37%

Top marginal rate

$38 trillion +

National Debt

Source: IRS.gov, Treasury.gov

The graph above illustrates the highest marginal income tax rates over time. Exemptions, deductions, and state and local taxes are not taken into account when illustrating these marginal tax rates. Your actual tax rates may vary from those shown on the graph, and historical rates are not a guarantee of future rates.

Top marginal income tax rate

u.s. debt in billions

Line chart comparing the U.S. top marginal income tax rate (1955–2025) with national debt levels. The tax rate starts above 90% in the 1950s, steadily declines to about 37% by 2025. The national debt line begins near zero in the 1950s and rises gradually until around 2000, after which it increases sharply, surpassing $38 trillion by 2025.