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 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. |