What’s next after the “supercommittee” failure?

What’s next after the “supercommittee” failure?

On November 21, the Co-Chairs of the Joint Select Committee on Deficit Reduction released a statement that said, in part, “After months of hard work and intense deliberations, we have come to the conclusion today that it will not be possible to make any bipartisan agreement available to the public before the committee’s deadline.” This

Understanding the Deficit Reduction Super Committee and the potential for tax changes

Understanding the Deficit Reduction Super Committee and the potential for tax changes

The signing of the Budget Control Act of 2011 into law on August 2, 2011, simultaneously raised the federal debt ceiling by $900 billion while enacting $917 billion in federal discretionary spending cuts over the next ten years. Additionally, the new law created a bipartisan Congressional committee (“Joint Select Committee on Deficit Reduction” or “Select

Debt ceiling resolution has been reached, but investors remain cautious

Debt ceiling resolution has been reached, but investors remain cautious

Congress and the White House have reached an agreement to raise the federal debt ceiling and have approved a package of spending cuts this week, but not until after weeks of debate that added to growing uncertainty in the markets and a lack of confidence from investors. A recent survey by TNS Global Market Research

Take advantage of the 0% capital gains tax rate

Take advantage of the 0% capital gains tax rate

Most of your clients are probably aware that the historically low, 15% maximum tax rate on long–term capital gains has been extended for the next two years. However, they may not be aware that taxpayers in the lowest two tax brackets actually benefit by paying no capital gains taxes on the sale of appreciated assets.

Muni tax break under pressure

Muni tax break under pressure

A Senate proposal to eliminate the tax–exempt status of municipal bonds may change the municipal bond market after 2011 and is an important piece of legislation to follow in the coming months. The tax break for investors has been under pressure since Congress began focusing on strategies to cut back on government spending and reduce

Encourage clients to make the most of their payroll tax cut

Encourage clients to make the most of their payroll tax cut

Encourage clients to make the most of their payroll tax cut For 2011 only, new tax law imposes a historic reduction in Social Security (FICA) taxes, cutting by two percentage points the employee’s portion of the 6.2% tax. Savings per worker will vary with income, but could be as much as $2,136 for those earning

Federal debt crisis solution could mean higher taxes

Federal debt crisis solution could mean higher taxes

Government action on the nation’s deficit in the coming months may result in future tax increases, adding to the challenge of long-term planning. As a result, it makes sense for clients to focus on tax strategies now, and take advantage of the clarity in tax law that exists through 2012. The most recent debate on

Make the most of deductions and exemptions

Make the most of deductions and exemptions

As taxpayers begin collecting their W-2s, 1099s and other tax forms, many are not aware of new provisions benefiting itemized deductions and personal exemptions. Prior to 2010, the value of claiming deductions and exemptions on the tax return diminished (or “phased out”) at higher income levels. For example, see phase-out limits from 2009: Personal exemptions