Wealthy Prepare for First Increase Since 1993: Taxes

[Purveyor]

By Margaret Collins - Dec 12, 2012

Taxes will rise for wealthy Americans next year. It’s still a question of how much.

U.S. income tax rates for top earners and investors will go up for the first time since 1993. They will see levies rise on unearned income and wages starting Jan. 1 to finance the 2010 law that sought to expand health-care coverage. President Barack Obama wants higher taxes on their compensation, capital gains, dividends and estates to reduce the deficit, proposing to raise the top marginal rate to as much as 43.4 percent on some income from 35 percent.

Lawmakers in both political parties have called for an overhaul of the U.S. tax code, which also could curtail tax breaks for home mortgage interest, municipal bonds, charitable contributions and retirement savings used by wealthy people.

“The prevailing emotion for our clients is frustration with the current situation with regards to taxes,” said Leo Kelly, managing director and partner at HighTower Advisors’ Kelly Wealth Management. “They really feel like they’re being held hostage because they can’t get information to make an intelligent decision.”

MORE...

http://www.bloomberg.com/news/print/2012-12-12/wealthy-prepare-for-first-increase-since-1993-taxes.html

[BanTheGOP]

1. Just a start...

...until we finally enact the GOP-sponsored Eisenhower era tax rates of 90%, back when their only sin was the repressionist racism and sexism they institutionalized in the 50's.

[upaloopa]

2. Rich can't make a decision?

Decide this, you got the elevator for 10 years while the poor and middle class got the shaft. Time you took the stairs for a while.

[GObamaGO]

3. Boo hoo.

[HughBeaumont]

4. <--------------- see this?

This is the atom speck of difference it will make in their oh-so-TRYING lives.

[ladjf]

5. You make a very important point that needs to understood by all. nt

[kestrel91316]

6. + 5 brazillion

[democrattotheend]

7. This is the first I am hearing 43.4%

I thought the top rate would only go up to 39.6%. Does the 43.4% include the new Obamacare tax on the wealthy as well?

I am happy to see that President Obama is also pushing for higher rates on capital gains, estate taxes and dividends and not just the top income tax rate. The income tax rate is the least important, IMO, since most of the really rich people make more through capital gains.