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 ...
“And it just might.”
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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.
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.
Fifty cents on the dollar now beats five cents later.
True
People are arming themselves because of fear of King George’s troops. Who would have ever thought it would happen again.
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.
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