Cliff-Hanger

Washington will not solve the Fiscal Cliff during the lame duck session of Congress. Rather, they’ll pass a stop-gap measure raising the debt ceiling and more importantly giving themselves more time to pass revenue-positive tax reform, consisting of broadening the tax base and lowering marginal tax rates. As now structured the Cliff mixes about $4…

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No More Taxing

Romney’s proposal works. Cutting tax rates by 20% costs $181 billion. Eliminating the AMT and taxes on interest, dividends and capital gains for couples with incomes below $200,000, and singles below $100,000, costs $38 billion. Filers with AGIs over $100,000 took $636 billion in itemized deductions, which taxed at 30% raises $191 billion, $28 billion…

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Big Taxes, No Money

Tax rates on dividends will rise from 15% up to 43.4% on 1/1/13 if the Bush tax cuts aren’t extended. Due to behavioral changes, it won’t raise much in taxes. Firms will immediately use money planned for dividends for share buybacks. Some firms will borrow (at today’s low rates) to make one extra-large dividend distribution…

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