Planning Now to Avoid Possible Obama Tax Hikes Later [Intentionally Incurring Capital Gain Now]

FOXBusiness ^ | November 13, 2008 | Matt Egan

[Son House]

“I think we expect the climate to become much more restrictive for high-income taxpayers. The things that had been done in the past -- whether they are perceived loopholes or actual loopholes --- [are] going to be reduced dramatically under an Obama presidency,” said Phil Tortorich, a partner and tax expert at Katten Muchin Rosenman LLP in Chicago.

Obama campaigned under a promise to cut taxes for American families making less than $250,000 a year while raising top federal income-tax rates from 35% to 39.6%. Of course, promises made on the campaign trail don't necessarily make it into law, and with the economy so weak Obama may not push for these changes early in his term.

Not everyone who might see an increase is upset about it, of course.

“A lot of his tax policy probably will come to fruition. If we can do something this year, then we should do it,” said Tortorich.

While wealthy individuals consider taking advantage of current capital-gains rates, professional baseball players without a contract race to secure their signing bonuses before the end of the year.

Major League Baseball free agents can’t begin to bargain with teams until Friday and contracts often aren’t settled until January. Even though it’s not clear if the those bonuses would be subject to a potential Obama tax hike, some agents aren’t willing to take the chance.

Still, wealthy individuals may feel the most pressure in regards to capital gains as Christerson said she could see changes to these rates being retroactive to January 1.

For example, Tortorich is urging his clients take advantage of the Qualified Personal Residence Trusts and Grantor Retained Annuity Trusts, which are used to transfer wealth or assets to future generations at low or no gift tax rates, in case they are banned in future years.

[Son House]

Senator Government will tank the Market completely as he tries to revert to the Clinton Clinton tax rates, like they were ever good for any business

[Man50D]

The most effective method to avoid paying increased income taxes is to push for replacing federal income taxes with a national sales tax. The Fair Tax Act(HR25/S1025) currently before Congress will replace federal income taxes with a national sales and abolish the IRS Fair Tax ping!

[DB]

Partying like it is 1999...

It isn't 1999...

Morons...

[DB]

The chances of the fair tax going anywhere ever is zero.

We are now at the tipping point where nearly half pay no income tax. They will never vote to pay income tax.

Kiss it goodbye...

America’s decline is assured now.

[LibLieSlayer]

“You say you want a revolution... oh well... you know... we all want to change the world”.

It's coming.

LLS

[NTHockey]

>>“You say you want a revolution... oh well... you know... we all want to change the world”.
It’s coming.

LLS<<

Better hurry. If we wait too long, the Chinese and Arabs will own what’s left of America. And we all know how tolerant they are of dissent.

[Man50D]

The chances of the fair tax going anywhere ever is zero.

The number of people signing onto be Fair Tax volunteers continues to increase and there are more cosponsors with each session of Congress and yet you claim The Fair Tax is going nowhere. Hmmmmmmmmm.

America’s decline is assured now.

Then why are you still here?

[LibLieSlayer]

When hussein gets cranked up the chicoms and arabs will want little to do with us... there will not be anything left to pilfer.

LLS

[DB]

You are in serious denial if you think the near majority - or is it the majority now - who pay virtually no income tax will support candidates that actually say they will tax them. There is no going back. The genie is out of the bottle. Government schools have been manufacturing governmentons in mass for too long now.

How do you know “I'm still here”? I may not be at all...

In truth, I have roots here that I'm not willing to dig up just yet. I am a small business owner that is in the sights of The One. Ultimately my business is transportable pretty much anywhere but I'm not willing to do that until it is too dangerous to stay. If it gets to the point that my country doesn't want me, then it really is time to go.

[Son House]

Because of this Democrat Congress pushing thru the $700 billion bail-out against the will of the people, I also agree the fair-tax legislation will not proceed. When are they going to properly name it the consumption tax? I think it stands a better chance if folks simply know what it is

[Man50D]

You are in serious denial if you think the near majority - or is it the majority now - who pay virtually no income tax will support candidates that actually say they will tax them.

You obviously haven't done your homework. Had you done so you would realize people far pay more in taxes with the income tax when you total all the embedded taxes corporate income taxes in the cost of every good sold. Add in the fact most people fall into the 15% tax bracket plus the 7.65% payroll tax wage earners pay along with the 7.65% employer matching. That total far exceeds what the 23% people will pay with the Fair Tax.

How do you know “I'm still here”? I may not be at all...

I see. The California flag you fly on your home page is just for show.

[DB]

If that is true, let them have the consequences from the voters. Frankly I think we are at the point were a mojority of voters are clueless that when the “government” bails something out it is their money being used if they pay income taxes - key being if they pay income taxes.

At an absolute minimum, in order to vote you ought to be a income tax payer. Otherwise you only have voters voting themselves someone elses hard work.

As far as the consumption tax, I know what would happen if we ever get a national sales tax. We'll have both an income tax and a sales tax... Getting ever more out of us...

[Man50D]

I also agree the fair-tax legislation will not proceed

You are under the false impression Congress Critters are in charge. That ignores the fact our founding fathers wrote the Constitution specifically to avoid a concentration of power among a select few by disbursing power to the many. That principle could not have been better illustrated when the masses resoundingly rejected amnesty for illegal aliens three times by overwhelming Congress with phone calls, faxes and emails. The same can happen and is happening with the growing grassroots Fair Tax movement.

Regardless of those facts, I don't see either of you offering alternatives to the income tax. You are only empowering those who seek control over the people by taking their freedom. Not opposing such oppression is tantamount to condoning the act.

[libertylover]

Obama campaigned under a promise to cut taxes for American families making less than $250,000 a year...

I guess the writer didn't hear, this was later reduced to $200,000 and then the reduced number was reduced to $150,000. Maybe I didn't hear. Maybe it got even lower.

[Man50D]

When are they going to properly name it the consumption tax?

Fair Tax supporters have been referring to The Fair Tax as a consumption tax for a long time. I use both the terms national sales tax or consumption tax. Take your pick. The terms are interchangeable.

[DB]

I've been here a long time and the fair tax has been discussed for a long, long time here...

As far as hidden taxes, it is essentially no different than withholding. Too many people are completely clueless. If they don't write the check it doesn't exist... They just get this wonderful check from the IRS come April that was their money all along - assuming they paid something in...

It doesn't take a tea leaf reader to see that the majority voted in the last election to have mommy and daddy government take care of them during the storm - a storm that is going to be made far worse as a result. As to where I'm located, I was joking about maybe not being here at all. I thought I explained that.

P.S. In case you don't know, I'm feeling pretty grumpy these days... My fellow citizens just voted to beat me over the head even more and I don't like it much. My opinion of my fellow citizens is running low these days as a result.

[Man50D]

P.S. In case you don't know, I'm feeling pretty grumpy these days... My fellow citizens just voted to beat me over the head even more and I don't like it much. My opinion of my fellow citizens is running low these days as a result.

Trust me you're not alone. I feel the same way but I refuse to empower those who either want socialism or have no idea who or what they just voted for by allowing it to continue. Rolling over and not doing anything about it only will only make matters worse. The Fair Tax is one of many methods to restore the freedom to the many our founding fathers intended.

[DB]

The constitution got tossed some time ago.

The founding fathers wouldn't recognize what is left.

A little late trying to save it.

Just rewind to November 4th, 2008 for a taste of what the masses voted for. Their candidate didn't exactly hide what his intentions were - and they weren't constitutional as far as the founding fathers are concerned. Hell, we don't even know if their President elect is a natural born citizen of this country another "requirement" of that constitution thing...

[Man50D]

The constitution got tossed some time ago.

The founding fathers wouldn't recognize what is left.

A little late trying to save it.

It's only too late if you let it happen. Conceding to socialism only begets more socialism.

[Son House]

rejected amnesty for illegal aliens three times by overwhelming Congress with phone calls, faxes and emails. The same can happen

.
Not with this Democrat Congress, the $700 billion Bail-out was probably just as unpopular

.
if I were to offer an alternative to the income tax, it would be a 9% flat tax. The Democrat Congress isn’t going to make anything more than Socialist changes to the income tax, stopping that is important yes, me giving an alternative, no chance. Posting this article is part of expecting the worse from Democrats in power, I stand opposed to empowering them