Obama Administration Rejects Tax Cut Extension on Investments
I know many of our clients are hoping for a reprieve on the expiration of the Bush tax cuts, but we just don’t see that happening. The Wall Street Journal reports that the White House has unilaterally rejected a Republican proposal to extend the Bush Tax cuts another two years. The Obama Administration instead proposes to extend cuts to working and middle-class Americans while eliminating the tax breaks for anyone earning over $250,000 per year. Under this scenario, taxes on capital gains will increase to 20%, taxes on dividends will more than double to as much as 39.6% and estate taxes will go up to 55% on estates over $1 million.
I hope we are wrong on this one, but even if the Republicans were to achieve a 1994-style victory in the house, it probably won’t result in repealing these tax increases. Does your investment plan include tax-advantaged strategies for maximizing wealth and passing it on to the next generation? Lyons Wealth Management works with individuals and institutions with $500,000 or more in investable assets and goals that include increasing income and reducing portfolio risk. Interested in learning more? Contact Alan Stevens at 407-951-8710.
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