Long Island Accountants Diapoules & Feinstein CPAs P.C. Comment on an Article Regarding Bill that will Avert Tax Consequences

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Following an article about a new bill passed by congress to avert fiscal cliff tax consequences, Diapoules & Feinstein CPAs P.C. offer their comments.

On January 21, 2013, Long Island accountants Diapoules & Feinstein CPAs P.C. comment on a Tax Warrior Chronicles article regarding how Congress passed a bill set to avert fiscal cliff tax consequences.

According to the Tax Warrior Chronicle article, “the US Senate ushered in the New Year by passing H.R. 8, the ‘American Taxpayer Relief Act,’ by a vote of 89-8.” The article states that, the Act will prevent tax hikes and retain the favorable tax breaks that were set to expire in the New Year.

The article reports, “For tax years beginning after 2012, the income tax rates for individuals will stay at 10%, 15%, 25%, 28%, 33% and 35%, but with a 39.6% rate applying for income above a certain threshold (specifically, income in excess of the ‘applicable threshold’ over the dollar amount at which the 35% bracket begins).”

The article also mentions that the new Act provides relief of alternative minimum tax (AMT). “The AMT is the excess, if any, of the tentative minimum tax for the year over the regular tax for the year,” states the article. According to the article, the Act also brings with it rise in capital gain rates, pension provision, Recovery Act extenders and business tax breaks.

Jim Diapoules, of Long Island accountants Diapoules & Feinstein CPAs P.C., comments on the article by stating, “For the first time since the passage of the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA) or the “Bush Tax Cuts” we have some certainty about what future tax policy will be. Without this certainty we are asking businesses and individuals to operate blindly. Hopefully, people will begin to invest in our economy now that they can properly plan. This is not to say that the Act is by any means perfect but it has kept intact many provisions that were popular and helpful to a good many individuals and businesses. One effect of this act is that any future tax law changes are going to be a great deal harder to enact now that most of the provisions in this act were made permanent. This does leave open the question as how do we get to a balance budget. We all better stay tuned.”

Diapoules and Feinstein CPAs P.C have been providing accounting, auditing and tax services to Greater New York City area since 1989. D&F provides our clients with great personal attention and years of professional experience in order to see them succeed and help them to feel confident.


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