We just spent months debating, watching political advertisements, trading opinions and ultimately voting to elect our Commander In Chief. Now we turn our attention to the fiscal cliff for decisions that have needed bi-partisan conversation for a very long time. There are real financial changes on the horizon if our elected officials don’t work together quickly. In a nutshell, what is at stake with the fiscal cliff?
- Expiration of Bush Tax Cuts
- Increased Medicare taxes on higher income individuals
- Expiration of long-term capital gains tax rates
- Qualified dividend taxes could be taxed at normal rates
- Significant estate tax changes
- Gift generation skipping tax changes
- FDIC insurance limit returns to $250,000
- End of Federal Reserve’s Operation Twist
No matter the size of your bank account or level of financial savvy, these discussions are ones that we really need to understand and in which we need to engage as a country.
Based on a Wall Street Journal/NBC poll, 75% of the country wants our legislators to find a compromise, and my hope is that calm minds prevail. To learn more about matters of the fiscal cliff, please see this video entitled “Year-End Planning Opportunities in a Changing Tax Landscape” or this piece on the “Ten Questions you should consider now – Focusing on upcoming tax changes”.