The time for partisan bickering is over and Republicans and Democrats need to come together and reach a compromise...
New York, New York (PRWEB) November 30, 2012
Forefront Capital CEO Bradley Reifler and other prominent Wall Street executives, like Morgan Stanley CEO James Gorman and Bank of America CEO Brian Moynihan, are urging Congress to seek a bipartisan solution to the looming fiscal cliff –a combination of dramatic spending cuts and tax increases that will hit Americans of all income levels after the end of this calendar year.
“The time for partisan bickering is over and Republicans and Democrats need to come together and reach a compromise in order to allay the fears of the business community and position our country for growth in 2013 and beyond,” says Brad Reifler.
In addition to automatic spending cuts that affect defense and nondefense spending cuts that impact education, food inspections and transportation safety, the expiration of Bush-era tax cuts on December 31 will result in one of the most dramatic and far-reaching tax increases in American history.
Income tax rates will rise to 15%, 28%, 31%, 36% and 39.6%, up from 10%, 15%, 25%, 28%, 33% and 35% today. The tax rate on capital gains would rise to 20% from 15% for most filers. The tax rate on qualified dividends would rise to one's top income tax rate (39.6%), up from 15% for most filers. The estate tax exemption falls to $1 million from $5 million; and the top tax rate on taxable estates rises to 55%, up from 35%. Other notable changes looming after December impact the Alernative Minimum Tax (AMT) and the Social Security tax rate, which will jump to 6.2%, from 4.2%, on the first $110,100 in wages.
“An individual making $50,000 will have to pay another $1,000 in payroll taxes next year, unless Congress acts,” says Brad Reifler, “sensible tax, Medicare, Medicaid and Social Security reform will help the middle class and jumpstart the moribund U.S. economy."