Menden Freiman

   

The Presidential Election results are in.  While opinions differ about our country's future and the prospect for businesses, it is clear that a second term for President Obama will  bring drastic tax changes beginning January 1, 2013.

 

Below is a summary of President Obama's campaign statements regarding income, estate, gift and generation-skipping transfer (GST) taxes:

 

 

CURRENT

LAW

2013 LAW IF NO ACTION

(tax cuts expire)

OBAMA'S PROPOSAL

Income Tax Rate

Top Tax Rate

35%

Top Tax Rate 39.6%

(43.4% on investment income with new health care reform tax)

 

Increase top two rates to 36% and 39.6%

Long-term Capital Gains Tax Rate

 

15%

20%

(23.8% including new health care reform tax)

20%

  Qualified Dividends Tax Rate  

15%

Taxed as ordinary income

Taxed as ordinary income

 

Interest Income

Taxed as ordinary income

 Taxed as ordinary income  

Taxed as ordinary income

Top Estate, Gift and GST Tax Rate

35%

 55%

45%

 

The following Reuters article highlights President Obama's proposal in more detail and explains how the President's plan will affect you and your family.

 

What Obama's win may mean for personal tax planning.  

 

We will continue to monitor the changes in the tax laws and inform you as changes occur.

To comply with the U.S. Treasury regulations, we must inform you that (i) any U.S. federal tax advice contained in this newsletter was not intended or written to be used, and cannot be used, by any person for the purpose of avoiding U.S. federal tax penalties that may be imposed on such person and (ii) each taxpayer should seek advice from their tax adviser based on the taxpayer's particular circumstances. 
MENDENFREIMAN LLP has been providing a practical and cost-sensitive approach to estate tax and business legal problem-solving for more than 15 years.

 

Known for its compassion and creative solutions, the firm has an exceptional track record of successful results when dealing with some of life's most difficult challenges.  The attorneys at MENDENFREIMAN LLP bring a strong tax, accounting and financial background, and a broad business perspective, to our areas of practice.

 

Contact us for additional information:
Two Ravinia Drive | Suite 1200 | Atlanta, GA 30346
Tel: 770.379.1450 | Fax: 770.379.1455

George D. Menden 

  

Lawrence H. Freiman 

 

Janet E. Fortune 

 

Bridget W. Christian

bchristian@mendenfreiman.com 

 

 

 

Paige P. Baker

pbaker@mendenfreiman.com 

 

Allison S. Cook

acook@mendenfreiman.com

 

Megan L. Richards
mrichards@mendenfreiman.com

 

Amanda H. Klier

aklier@mendenfreiman.com