Details of the deal (with my thoughts in BOLD ITALICS):
Income Tax: Over $400k Individual / $450K Joint, Goes from 35% back to 39.5%. Personal exemptions phase out at $250K and $300K.
Actually, I think this was a reasonable compromise; Income taxes had to go up SOME, this amount, while not enough to pay down squat, isn't too big to absorb by those actually making that kind of money. $250K was way too low a line. Both sides can claim some victory; the Republicans were NOT holding the high ground on this one.
Estate Tax: 40% at $5M Individual and $10M Family. Up from 35%.
This one was the one that scared me the most. Income tax is pay as you go, but Inheritance tax is tax paid on money/assets/wealth you've ALREADY paid taxes on, and really effects small business and family farms (have to sell the asset or go into huge debt just to pay the tax to keep it). Much better than the result of going over the cliff (50% with no exclusion would have KILLED small business and the economy along with it). If I had to compromise, I'd rather pay higher income taxes, but what I've got afterwards IS MINE.
Capital Gains: 20% on those exceeding the Income limits above, up from 15%.
Surviveable won't destroy the stock market.
AMT: Idexes AMT for inflation
Surviveable
Other:
- 5 year expansion of Child Tax Credit, Earned Income Tax Credit, Renewable Energy, Accelerated Depreciation, R&D, Renewable Engergy, $2500 Tuition Credit.
5 years WAAY too long. Anybody who thinks the above deal lasts past the next congressional election cycle is fooling themselves. Earned income tax credit burns my shorts the worst: It's a CASH REBATE on taxes NEVER PAID (just call it WELFARE; debate and vote on it as such). Oh, and the more babies you have that you can't afford, the more the gov't pays you..
- Extended unemployment benefits for another year
What is it, now 4 years extended paid vacation? They need it to start to go down after a point so people don't get dependent on it. I had someone tell me today that they had hired a guy to start today; he didn't show up this morning and when asked why, he said he didn't have to since his unemployment had gotten extended.....here's a guy that COULD work but chooses not to because he's living on the Govt dole...
- Blocked 27% Medicare Reimbursement cut
Don't have opinion but I'm sure Doctors do.
- Social Security Payroll Tax cut expires (2%)
Should have never been enacted anyway because it was supposed to be temporary. Effects everyone that actually WORKS equally.
- Delayed Sequester of Defense Budget for 2 months
Ridiculous just kicked the can for 60 days about the time we fight over debt ceiling
- Harder to convert existing Traditional IRA's to Roths.
Survivable
The bottom line is: Both sides got some of what they wanted thru this manufactured crisis, but the real loser is still the country as it does nothing to stop or even slow down the reckless spending spiral we are in. We don't have a revenue problem, we have a SPENDING problem. Uncle Sam needs to get his dirty hands out of his great-grandchildren's piggy banks! Look for the next "cliff" to be the debt ceiling. By making all these "crisis", it will promise another slow, bumpy 2013 because we still live in too much uncertainty.
Income Tax: Over $400k Individual / $450K Joint, Goes from 35% back to 39.5%. Personal exemptions phase out at $250K and $300K.
Actually, I think this was a reasonable compromise; Income taxes had to go up SOME, this amount, while not enough to pay down squat, isn't too big to absorb by those actually making that kind of money. $250K was way too low a line. Both sides can claim some victory; the Republicans were NOT holding the high ground on this one.
Estate Tax: 40% at $5M Individual and $10M Family. Up from 35%.
This one was the one that scared me the most. Income tax is pay as you go, but Inheritance tax is tax paid on money/assets/wealth you've ALREADY paid taxes on, and really effects small business and family farms (have to sell the asset or go into huge debt just to pay the tax to keep it). Much better than the result of going over the cliff (50% with no exclusion would have KILLED small business and the economy along with it). If I had to compromise, I'd rather pay higher income taxes, but what I've got afterwards IS MINE.
Capital Gains: 20% on those exceeding the Income limits above, up from 15%.
Surviveable won't destroy the stock market.
AMT: Idexes AMT for inflation
Surviveable
Other:
- 5 year expansion of Child Tax Credit, Earned Income Tax Credit, Renewable Energy, Accelerated Depreciation, R&D, Renewable Engergy, $2500 Tuition Credit.
5 years WAAY too long. Anybody who thinks the above deal lasts past the next congressional election cycle is fooling themselves. Earned income tax credit burns my shorts the worst: It's a CASH REBATE on taxes NEVER PAID (just call it WELFARE; debate and vote on it as such). Oh, and the more babies you have that you can't afford, the more the gov't pays you..
- Extended unemployment benefits for another year
What is it, now 4 years extended paid vacation? They need it to start to go down after a point so people don't get dependent on it. I had someone tell me today that they had hired a guy to start today; he didn't show up this morning and when asked why, he said he didn't have to since his unemployment had gotten extended.....here's a guy that COULD work but chooses not to because he's living on the Govt dole...
- Blocked 27% Medicare Reimbursement cut
Don't have opinion but I'm sure Doctors do.
- Social Security Payroll Tax cut expires (2%)
Should have never been enacted anyway because it was supposed to be temporary. Effects everyone that actually WORKS equally.
- Delayed Sequester of Defense Budget for 2 months
Ridiculous just kicked the can for 60 days about the time we fight over debt ceiling
- Harder to convert existing Traditional IRA's to Roths.
Survivable
The bottom line is: Both sides got some of what they wanted thru this manufactured crisis, but the real loser is still the country as it does nothing to stop or even slow down the reckless spending spiral we are in. We don't have a revenue problem, we have a SPENDING problem. Uncle Sam needs to get his dirty hands out of his great-grandchildren's piggy banks! Look for the next "cliff" to be the debt ceiling. By making all these "crisis", it will promise another slow, bumpy 2013 because we still live in too much uncertainty.
When I see the peso, currently around .10/dollar worth .50/dollar, I'm outta here 
