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Wealthy Dump Assets Amid Worries About Going Over 'Cliff'
CNBC ^ | Nov 12, 2012 | Robert Frank

Posted on 11/12/2012 5:23:35 PM PST by Innovative

Wealth advisors say that with capital-gains taxes potentially going to 25 percent from 15 percent, and other possible increases in the dividend tax, estate tax and other taxes, many clients are selling now to save millions in taxes.

If the Bush-era tax cuts expire, taxes on capital gains would revert back to its previous rate of 20 percent from its current 15 percent. Another 5 percent may be added from health-care levies and changes in itemized deductions, bringing the rate to 25 percent for many high earners.

Taxes on dividends could go from 15 percent to over 43 percent. And the estate tax could go from 35 percent on estates worth more than $5 million to 55 percent on estates over $1 million.

He also said that all this income-shifting could make revenues more volatile and unpredictable. It might also result in the government raising less than expected during the first year or two of the tax increase.

(Excerpt) Read more at cnbc.com ...


TOPICS: Business/Economy; Extended News; Government; News/Current Events; Politics/Elections
KEYWORDS: capitalgains; capitalgainstax; fiscalcliff; government; obama; soaktherich; taxes
Elections have consequences.

Happy Obama's second term!

1 posted on 11/12/2012 5:23:45 PM PST by Innovative
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To: Innovative

consider the source, lying prevaricating cnbc


2 posted on 11/12/2012 5:26:40 PM PST by yldstrk (My heroes have always been cowboys)
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To: Innovative
"Wealthy (and anyone with assets) Dump Assets Amid Worries About Going Over 'Cliff'"

Gee! . . . who knew?

3 posted on 11/12/2012 5:28:26 PM PST by YHAOS (you betcha!)
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To: Innovative

The comments made by liberals underneath this article are frightening. They are so ignorant! The guy who thinks returning to Clinto-era tax rates will reduce the deficit is a joke. You could tax all wealthy people at 100% of their income and it would just fund the government for a few days.


4 posted on 11/12/2012 5:31:16 PM PST by MrChips (MrChips)
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To: Innovative

People just don’t go into the cattle cars willingly anymore, do they?


5 posted on 11/12/2012 5:31:49 PM PST by Vince Ferrer
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To: Innovative

Dumped mine, made some dough in spite of taxes and was chastised by my Obamabot broker.
Elections do indeed have consequences!


6 posted on 11/12/2012 5:42:36 PM PST by acapesket
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To: MrChips

Of those that earn $100 thousand dollars, or more, the total income is between $10 and $20 billion dollars.

Many lefties I have talked to honestly believe that the top 1% of the country earns trillions.


7 posted on 11/12/2012 5:45:16 PM PST by Jonty30 (What Islam and secularism have in common is that they are both death cults.)
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To: Jonty30

As I said, sheer ignorance. It will be hard on all of us, but I almost hope the whole house of cards collapses on Obama’s watch. And it just might.


8 posted on 11/12/2012 5:47:40 PM PST by MrChips (MrChips)
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To: Innovative

I have a friend who is a brilliant investment banker. She liquidated all of her stocks, added security to her home, and bought a gun. Gun sales in the US have gone through the roof after elections. We can no longer trust anything or anyone in terms of government, media, or the financial markets. Brace yourselves friends.


9 posted on 11/12/2012 5:49:41 PM PST by mgist
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To: MrChips

I didn’t see the comments, where are they ?


10 posted on 11/12/2012 5:50:17 PM PST by PMAS (All that is necessary for the triumph of evil is that good men do nothing)
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To: PMAS

You have to click on the article itself and read it at the original website and scroll down.


11 posted on 11/12/2012 5:54:54 PM PST by MrChips (MrChips)
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To: Vince Ferrer
I really don't see much difference.

They passed out bread and jelly to get the Jews on the train, and Obama’s passing out the bread and jelly to anyone that will take it.

12 posted on 11/12/2012 6:28:04 PM PST by IMR 4350
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To: mgist

‘You don’t have to be a Weatherman to know which way the wind blows.’
our side has never called for the murder of 25 million die hard capitalists


13 posted on 11/12/2012 6:50:41 PM PST by griswold3 (Big Government does not tolerate rivals.)
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To: Innovative

My stock is currently at 50% of basis price. No point in selling. Defense stocks will have to make a huge recovery for any kind of capital gains hit.


14 posted on 11/12/2012 7:01:54 PM PST by Myrddin
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To: MrChips

oh oh oh...my favorite
‘no matter how the politicians spin it, the government needs more income to pay for the wants and needs demanded by the people’ LOL
What people learn from history is that people do not learn from history.
Stop if you’ve heard this before, but it’s my all time favorite and proving to be more true today...
“It should be known that at the beginning of a dynasty, taxation yields a large revenue from small assessments. At the end of the dynasty, taxation yields a small revenue from large assessments.”
‘Abd-ar-Rah.mân Abû Zayd ibn Khaldûn (1332-1406)


15 posted on 11/12/2012 7:04:21 PM PST by griswold3 (Big Government does not tolerate rivals.)
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To: Myrddin
I have a little stock, not retirement, and the only reason I keep it is because its a sentimental favorite and the organization is from around where I grew up, plus it pays very tiny stock dividends and has been for about 100 yrs...I reinvest it ...

I think of it as a nice gift for my grandchildren in 20 yrs....

but gees...why keep it if dividends are going to be taxed so high..

16 posted on 11/12/2012 7:18:41 PM PST by cherry
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To: Myrddin
I have a little stock, not retirement, and the only reason I keep it is because its a sentimental favorite and the organization is from around where I grew up, plus it pays very tiny stock dividends and has been for about 100 yrs...I reinvest it ...

I think of it as a nice gift for my grandchildren in 20 yrs....

but gees...why keep it if dividends are going to be taxed so high..

17 posted on 11/12/2012 7:20:00 PM PST by cherry
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To: cherry

My terribly undervalued stock has been generating dividends this year. Better than a total loss.


18 posted on 11/12/2012 7:30:37 PM PST by Myrddin
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To: Myrddin

Stocks don’t yield dividends in the Third World. Only bribes do...


19 posted on 11/13/2012 2:01:42 AM PST by wastoute (Government cannot redistribute wealth. Government can only redistribute poverty.)
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To: MrChips

“You could tax all wealthy people at 100% of their income and it would just fund the government for a few days.”
//////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////

Moreover it would cause them to cease operations that produce income and would result it a cataclysmic crash beyond the imagining of those who support such tax increases. I have long marveled that the same people who don’t want to work to support themselves but want to steal their living from those who are doing better than they are imagine that the people they want to rob will continue to happily produce more wealth which can be stolen. It is a stupid parasite that is willing to kill the host.


20 posted on 11/13/2012 8:46:18 AM PST by RipSawyer (Free healthcare is worth FAR LESS than it costs.)
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To: MrChips

“And it just might.”
//////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////

It just might implies that it just might not! My question is how could the whole thing not collapse within the next four years. I honestly don’t see how it can be stretched out for much more than another four months. Of course I must admit that I thought that things would be even worse than they are by this time. A lot is being hidden from the eyes of the average dummy who voted for Obama, I honestly believe that in reality we are even now in far worse shape than at any time during the depression of the thirties. I see the potential for a disaster to make the thirties look like a picnic on the beach. My parents lived through the thirties and they were at all times far better prepared to weather a storm than the “wealthy” people who were dumpster diving following Sandy. They had chickens in the yard and pigs in the pen, rabbits in the brush and so forth.


21 posted on 11/13/2012 8:54:38 AM PST by RipSawyer (Free healthcare is worth FAR LESS than it costs.)
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To: Innovative

I primarily sell to businesses. In the past week EVERY business owner I have spoken to (a couple of dozen) has shared their plan for the next four years. The main points seem to be:

1) Generate only enough profit to survive. Since any great increase in profit will be highly taxed, why bother?

2) Hire no one. If you must hire someone, hire a family member or close friend.

3) Fire as many employees as you can to keep in line with objective number one.

4) Purchase only the equipment needed to keep objective #1 in play.

5) Go through your customer list and greatly increase your prices for high maintenance clients.

6) Hope it gets bad enough that we never elect a Democrat President again for generations, but not so bad that you lose your company.


22 posted on 11/13/2012 9:06:36 AM PST by Crusher138 ("Then conquer we must, for our cause it is just")
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To: Myrddin

Fifty cents on the dollar now beats five cents later.


23 posted on 11/13/2012 10:21:39 AM PST by RipSawyer (Free healthcare is worth FAR LESS than it costs.)
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To: RipSawyer

True


24 posted on 11/13/2012 10:36:22 AM PST by Myrddin
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To: mgist

People are arming themselves because of fear of King George’s troops. Who would have ever thought it would happen again.


25 posted on 11/13/2012 1:04:27 PM PST by Terry Mross (I haven't watched the news since the election. Someone ping me if anything big happens.)
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To: RipSawyer

On the other hand, so everyone’s taxes fo up and there is a huge cut in spending. It’s a cliff, but the second half is not all bad.


26 posted on 11/13/2012 2:01:36 PM PST by MrChips (MrChips)
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