Arthur Godfrey once said, “I’m proud to pay taxes in the United States; the only thing is, I could be just as proud for half the money.”

With the COVID-19 crisis and political unrest, taxes are likely to go up, regardless of what happens in the upcoming presidential election. Government spending is at an all-time high, and all that money needs to be paid back, so that spells tax increase.

Irrespective of election outcomes, federal and state governments are facing overwhelming budget deficits from the pandemic. The fallout from the economic shutdown has put pressure on government finances, leaving many to anticipate a variety of tax increases.

The current tax reform expires in 2025, but will Congress hike taxes in advance of this sunset provision?

It can be argued that hiking taxes during an economic crisis could put even more small business under as they won’t survive a tax increase on top of decreased earnings, so some may believe taxes won’t increase. With the debt burden incurred this year alone, it may be wise to think of ways you can prepare for an eventual tax increase — whether it occurs sooner or later.

Since the current marginal tax brackets are historically low, and the market dropped in the first quarter, one helpful action is to make a Roth conversion before the Dec. 31 deadline.

There is a limited opportunity for taxpayers to convert all or part of their IRAs to Roth IRAs and stay within the current, more desirable tax bracket. Here is an example of a “fill the bucket” approach to a Roth conversion. A single person who makes $50,000 a year is in the 22 percent tax bracket. This person could convert $35,525 of their IRA, increasing their income to $85,525 and still be in the 22 percent tax bracket.

The tax rate for that tax bracket could go up after this year, so to convert now takes advantage of the current rate, plus it makes the growth and income on those converted funds tax free into the future.

Within the Coronavirus Aid, Relief and Economic Security (CARES) Act that was adopted in response to the pandemic, a waiver was granted for required minimum distribution (RMD) amounts during the current year.

Since income can be lowered by the RMD amount that otherwise would have been treated as a taxable distribution, this may be a good opportunity to convert those dollars (or more) to a Roth IRA.

You could even use a “fill the bucket” approach and convert the maximum amount left within your tax bracket. The taxable distribution then becomes tax free in future years.

And a Roth conversion isn’t just good for the individual, it’s good for the family. If your children are in their peak earning years and they receive a Roth IRA inheritance, distribution of the account won’t trigger any tax consequence.

Another potential tax trap in the future is capital gains. Currently, the long-term capital gains tax for single taxpayers is zero for incomes below $40,000, 15 percent for those with income between $40,000 and $441,450, and 20 percent for incomes above that (married filing jointly ranges are below $80,000 for 0 percent tax rate, 15 percent for $80,000 to $496,600 before hitting the 20 percent rate). If you have large capital gains, you may want to harvest gains now rather than in the future when rates could be higher or could be equal to the ordinary income tax rate.

Yet another area of the tax code that could see reform is in estate taxes. Currently, the federal estate tax is 40 percent for estate values in excess of the $11.58 million exemption amount ($23.16 million for couples), which is set to expire in 2026. Twenty years ago, the exemption amount was only $675,000 with a 55 percent top estate tax rate.

There is also the possibility of the stepped-up cost basis being eliminated for assets passed through an inheritance, so that could impact some of the assets being held in your investment accounts that might be earmarked for transfer at death.

Speaking of these various parts of the tax code and their potential future changes brings to mind another quote with which I will close and leave you to ponder: “We contend that for a nation to try to tax itself into prosperity is like a man standing in a bucket and trying to lift himself up by the handle.” — Winston Churchill.

Wendy Bennett is a senior financial adviser at Bennett Associates Wealth Management in Butler.