The fiscal cliff hits January 1, 2013, a few days away. Congress and the White House still are unable to reach an agreement on the Tax Code and spending cuts. Remember, the budget is really a version of your checkbook. It is a matter of how much money you pay out (expenditures and entitlements) and how much money you bring in (through taxes).
Even if we put a higher tax rate on those who earn more money, the amount of money brought into the U.S. Treasury is infinitesimally small. It will not be much of an impact on the Economy.
We will continue to watch the Tax Code. Things to watch for in the outcome include: the Estate Tax Exemption, Alternative Minimum Tax, Income Tax rates and the Capital Gains Tax. Each of these play an important part in how people work, invest, grow, and open or close businesses. We will continue to keep an eye on the White House and Congress and look to see if any leadership shows up at any point in time. Right now, if any of these gentlemen were to stand in front of us and turn and shout over their shoulder “Follow Me!”, few, if any of us, would follow.
At the Law Firm of Steven Andrew Jackson, Attorney and Counsellor at Law, we have helped hundreds of families protect themselves and their loved ones, avoid Estate Taxes and Probate Costs, and keep their Estate Plans current with the law through The Customized Protective Estate Planning Solution™.