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> Everything you wanted to know about the "deal", but were afraid to ask
pdx5
post Jan 1 2013, 12:45 AM
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likely to look like:

(Source: Reuters)

— Tax rates will permanently rise to Clinton-era levels for families with income above $450,000 and individuals above $400,000. All income below the threshold will permanently be taxed at Bush-era rates.
— The tax on capital gains and dividends will be permanently set at 20 percent for those with income above the $450,000/$400,000 threshold. It will remain at 15 percent for everyone else. (Clinton-era rates were 20 percent for capital gains and taxed dividends as ordinary income, with a top rate of 39.6 percent.)
— The estate tax will be set at 40 percent for those at the $450,000/$400,000 threshold, with a $5 million exemption. That threshold will be indexed to inflation, as a concession to Republicans and some Democrats in rural areas like Sen. Max Baucus (D-Mt.).
— The sequester will be delayed for two months. Half of the delay will be offset by discretionary cuts, split between defense and non-defense. The other half will be offset by revenue raised by the voluntary transfer of traditional IRAs to Roth IRAs, which would tax retirement savings when they’re moved over.
— The pay freeze on members of Congress and all other federal civilian employees, which Obama had lifted this week, will be re-imposed, .
— The 2009 expansion of tax breaks for low-income Americans will be extending, continuing a more generous Earned Income Tax Credit, the Child Tax Credit, and the American Opportunity Tax Credit.
— The Alternative Minimum Tax will be permanently patched to avoid raising taxes on the middle-class.
— The deal will not address the debt-ceiling, and the payroll tax holiday will be allowed to expire.
— Two limits on tax exemptions and deductions for higher-income Americans will be reimposed: Personal Exemption Phaseout (PEP) will be set at $250,000 and the itemized deduction limitation (Pease) kicks in at $300,000.
—The full package of temporary business tax breaks — benefiting everything from R&D and wind energy to race-car track owners — will be extended for another year.
— Scheduled cuts to doctors under Medicare would be avoided for a year through spending cuts that haven’t been specified.
— Federal unemployment insurance will be extended for another year, benefiting those unemployed for longer than 26 weeks. This $30 billion provision won’t be offset.
— A nine-month farm bill fix will be attached to the deal, Sen. Debbie Stabenow told reporters, averting the newly dubbed milk cliff.



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Main reason I am still solvent..my focus changed to NOT losing trading capital instead of risky trades.
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Sentient Being
post Jan 1 2013, 07:39 AM
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I caught the speech. Obama wanted to cut spending but those bad old Republicans wouldn't let him! LAUGH.

I think this administration is scared stiff that if they take away all the borrowing and printing the economy collapses, they don't know how to let go of the spending.


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rjo
post Jan 1 2013, 08:21 AM
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QUOTE (pdx5 @ Jan 1 2013, 12:45 AM) *
likely to look like:

(Source: Reuters)

— Tax rates will permanently rise to Clinton-era levels for families with income above $450,000 and individuals above $400,000. All income below the threshold will permanently be taxed at Bush-era rates.
— The tax on capital gains and dividends will be permanently set at 20 percent for those with income above the $450,000/$400,000 threshold. It will remain at 15 percent for everyone else. (Clinton-era rates were 20 percent for capital gains and taxed dividends as ordinary income, with a top rate of 39.6 percent.)
— The estate tax will be set at 40 percent for those at the $450,000/$400,000 threshold, with a $5 million exemption. That threshold will be indexed to inflation, as a concession to Republicans and some Democrats in rural areas like Sen. Max Baucus (D-Mt.).
— The sequester will be delayed for two months. Half of the delay will be offset by discretionary cuts, split between defense and non-defense. The other half will be offset by revenue raised by the voluntary transfer of traditional IRAs to Roth IRAs, which would tax retirement savings when they’re moved over.
— The pay freeze on members of Congress and all other federal civilian employees, which Obama had lifted this week, will be re-imposed, .
— The 2009 expansion of tax breaks for low-income Americans will be extending, continuing a more generous Earned Income Tax Credit, the Child Tax Credit, and the American Opportunity Tax Credit.
— The Alternative Minimum Tax will be permanently patched to avoid raising taxes on the middle-class.
— The deal will not address the debt-ceiling, and the payroll tax holiday will be allowed to expire.
— Two limits on tax exemptions and deductions for higher-income Americans will be reimposed: Personal Exemption Phaseout (PEP) will be set at $250,000 and the itemized deduction limitation (Pease) kicks in at $300,000.
—The full package of temporary business tax breaks — benefiting everything from R&D and wind energy to race-car track owners — will be extended for another year.
— Scheduled cuts to doctors under Medicare would be avoided for a year through spending cuts that haven’t been specified.
— Federal unemployment insurance will be extended for another year, benefiting those unemployed for longer than 26 weeks. This $30 billion provision won’t be offset.
— A nine-month farm bill fix will be attached to the deal, Sen. Debbie Stabenow told reporters, averting the newly dubbed milk cliff.



Any idea if futures tax treatment has changed at all? (Ie 60/40 long term short term)
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MikeyG
post Jan 1 2013, 08:26 AM
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Posts: 1901
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Member No.: 8466



QUOTE (pdx5 @ Jan 1 2013, 12:45 AM) *
likely to look like:

(Source: Reuters)

— Tax rates will permanently rise to Clinton-era levels for families with income above $450,000 and individuals above $400,000. All income below the threshold will permanently be taxed at Bush-era rates.
— The tax on capital gains and dividends will be permanently set at 20 percent for those with income above the $450,000/$400,000 threshold. It will remain at 15 percent for everyone else. (Clinton-era rates were 20 percent for capital gains and taxed dividends as ordinary income, with a top rate of 39.6 percent.)
— The estate tax will be set at 40 percent for those at the $450,000/$400,000 threshold, with a $5 million exemption. That threshold will be indexed to inflation, as a concession to Republicans and some Democrats in rural areas like Sen. Max Baucus (D-Mt.).
— The sequester will be delayed for two months. Half of the delay will be offset by discretionary cuts, split between defense and non-defense. The other half will be offset by revenue raised by the voluntary transfer of traditional IRAs to Roth IRAs, which would tax retirement savings when they’re moved over.
— The pay freeze on members of Congress and all other federal civilian employees, which Obama had lifted this week, will be re-imposed, .
— The 2009 expansion of tax breaks for low-income Americans will be extending, continuing a more generous Earned Income Tax Credit, the Child Tax Credit, and the American Opportunity Tax Credit.
— The Alternative Minimum Tax will be permanently patched to avoid raising taxes on the middle-class.
— The deal will not address the debt-ceiling, and the payroll tax holiday will be allowed to expire.
— Two limits on tax exemptions and deductions for higher-income Americans will be reimposed: Personal Exemption Phaseout (PEP) will be set at $250,000 and the itemized deduction limitation (Pease) kicks in at $300,000.
—The full package of temporary business tax breaks — benefiting everything from R&D and wind energy to race-car track owners — will be extended for another year.
— Scheduled cuts to doctors under Medicare would be avoided for a year through spending cuts that haven’t been specified.
— Federal unemployment insurance will be extended for another year, benefiting those unemployed for longer than 26 weeks. This $30 billion provision won’t be offset.
— A nine-month farm bill fix will be attached to the deal, Sen. Debbie Stabenow told reporters, averting the newly dubbed milk cliff.




I think the sequester cuts automatically start in 2 months if they can't reach a spending deal...



--------------------
1) Wisdom
2) Understanding
3) Counsel
4) Courage
5) Knowledge
6) Reverence
7) Wonder and Awe

I mostly trade the RUT and some currencies, my time frame is usually weeks and months.
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Data
post Jan 1 2013, 09:39 AM
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"The other half will be offset by revenue raised by the voluntary transfer of traditional IRAs to Roth IRAs, which would tax retirement savings when they’re moved over."

You mean the tax on Roth conversions that's already in the tax law.
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pdx5
post Jan 1 2013, 01:31 PM
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From: Seattle, WA
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QUOTE (Sentient Being @ Jan 1 2013, 04:39 AM) *
I caught the speech. Obama wanted to cut spending but those bad old Republicans wouldn't let him! LAUGH.

I think this administration is scared stiff that if they take away all the borrowing and printing the economy collapses, they don't know how to let go of the spending.


You got that right, SB.....when you have a tiger by the tail, you can not let go else he devours you.


--------------------
Main reason I am still solvent..my focus changed to NOT losing trading capital instead of risky trades.
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pdx5
post Jan 1 2013, 01:35 PM
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Group: Traders-Talk User
Posts: 5380
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From: Seattle, WA
Member No.: 2061



QUOTE (rjo @ Jan 1 2013, 05:21 AM) *
Any idea if futures tax treatment has changed at all? (Ie 60/40 long term short term)


My guess is anything not specified in the deal remains unchanged. Such as mortgage deductions.
However keep in mind, the House has yet to vote on this, and there could be reconciliation changes.
Further on, in 2 months the debt limit is reached and another imbroglio is in the cards.


--------------------
Main reason I am still solvent..my focus changed to NOT losing trading capital instead of risky trades.
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ogm
post Jan 1 2013, 05:13 PM
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QUOTE (pdx5 @ Jan 1 2013, 01:35 PM) *
QUOTE (rjo @ Jan 1 2013, 05:21 AM) *
Any idea if futures tax treatment has changed at all? (Ie 60/40 long term short term)


My guess is anything not specified in the deal remains unchanged. Such as mortgage deductions.
However keep in mind, the House has yet to vote on this, and there could be reconciliation changes.
Further on, in 2 months the debt limit is reached and another imbroglio is in the cards.



House would be incredibly stupid not to take this deal, while its there. Liberals don't like it, which means that's the best republicans will get.

Because this is the point where all negotiations with tea party loonie terrorists may stop.

Cliff will go off, taxes will go up on everyone, and Republicans will be left holding the bag of rising unemployment and weakening economy and higher taxes.

And there will be an executive order to raise the debt ceiling without any further negotiations under the cover of constitutional wording. Can't negotiate with terrorists.

But there are way too many deranged kids in congress, like Ryan, hell bent on pushing the country into recession to make some political point, so can't really expect them to be smart.

This post has been edited by ogm: Jan 1 2013, 05:19 PM
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MikeyG
post Jan 1 2013, 07:05 PM
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QUOTE (ogm @ Jan 1 2013, 05:13 PM) *
QUOTE (pdx5 @ Jan 1 2013, 01:35 PM) *
QUOTE (rjo @ Jan 1 2013, 05:21 AM) *
Any idea if futures tax treatment has changed at all? (Ie 60/40 long term short term)


My guess is anything not specified in the deal remains unchanged. Such as mortgage deductions.
However keep in mind, the House has yet to vote on this, and there could be reconciliation changes.
Further on, in 2 months the debt limit is reached and another imbroglio is in the cards.



House would be incredibly stupid not to take this deal, while its there. Liberals don't like it, which means that's the best republicans will get.

Because this is the point where all negotiations with tea party loonie terrorists may stop.

Cliff will go off, taxes will go up on everyone, and Republicans will be left holding the bag of rising unemployment and weakening economy and higher taxes.

And there will be an executive order to raise the debt ceiling without any further negotiations under the cover of constitutional wording. Can't negotiate with terrorists.

But there are way too many deranged kids in congress, like Ryan, hell bent on pushing the country into recession to make some political point, so can't really expect them to be smart.



You can't delay the inevitable, eventually there has to be cuts...

At what point do you think there is a debt problem???

20T, 100T a Quadrillion???

I personally would rather pay higher taxes start to get this thing under control and get some spending cuts in there as well...


--------------------
1) Wisdom
2) Understanding
3) Counsel
4) Courage
5) Knowledge
6) Reverence
7) Wonder and Awe

I mostly trade the RUT and some currencies, my time frame is usually weeks and months.
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pdx5
post Jan 1 2013, 08:35 PM
Post #10


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Group: Traders-Talk User
Posts: 5380
Joined: 6-July 04
From: Seattle, WA
Member No.: 2061



QUOTE (MikeyG @ Jan 1 2013, 04:05 PM) *
At what point do you think there is a debt problem???

20T, 100T a Quadrillion???


Great question, but I also know that you will not get an answer.


--------------------
Main reason I am still solvent..my focus changed to NOT losing trading capital instead of risky trades.
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