Fox Business
Expand
Browse All Video
Watch Live

You're watching...

Get Ready For Taxmageddon

Details

  • Description

    Deloitte Tax LLP’s Clint Stretch on the health-care law’s taxes, the fiscal cliff and spending cuts.

  • Duration 3:43
  • Date

Clips

Also in this playlist...

Markets Now

Auto-advance: ON

Auto-advance
View All

Transcript

This transcript is automatically generated

I Supreme Court on the other hand says -- president's Health Care Reform is -- tax.

After another thing that the already contentious debate over taxes and Washington to really go from the -- Joining us help break it all down Chris Vance tax principal at Deloitte tax I'm so glad you're here click is this is so.

Convoluted and complicated let's first start with the pending fiscal cliff.

What are what are they gonna do to fix this.

I think there -- going to delay the last possible moment.

And then drop back and -- that's the most likely scenario for the end the year I don't see a lot of emerging.

Conversation Washington moving towards a deep compromise to -- after the election we're gonna have patched things up.

Which might make sense of we're gonna do tax reform next year to just go ahead and say look we'll extend the tax laws that is.

But we'll get to it next year the exception might be this taxes in the health care bill.

On high income earners.

That goes into Medicare hand it's it's a new wage tax of point zero point 9% on.

Wages.

Or three point 8% on investment income.

That tax -- cause of funds Medicare might be a lot harder to deal with.

-- here's saying they're gonna punish -- by punting on everything you're saying there's gonna extend at all.

And then he doesn't easiest thing to do sure that's the easiest thing for them to do.

Unless they can find some compromise -- you've got agree on how much money do we want to take into Washington.

What are we going to do on entitlements.

And what kinds -- -- we're gonna have that's an awful lot to try to get an agreement on.

In the four -- five weeks we have the work.

After the election.

OK so but we can't we -- the money to fund that and then as you mentioned we have the additional Medicare act tax that's on everybody's payroll.

We added three point 8% investment income that we just showed on families making two -- thousand dollars or more that's on their net investment income.

We also have this mandate tax -- -- we a lot of taxes coming down the pike.

How how could we possibly handle all this.

Well -- you don't.

We've got -- handle it because it's common.

I think -- the way we handled is to take it in pieces and so of the bush tax cuts expiring.

That -- it seems -- politically they can.

Stall on that the others enacted it comes in and taxpayers are gonna have to look at it and decide if capital gains rates are gone up for rates on.

Dividends and interest are growing up as of this new tax what do they wanna do and I think you start with what do you wanna -- what he wanna be invested.

Yeah then you think about the.

Capsule you had a great point though that increase in Medicare attacks.

And the investment income tax all goes into this fund to supposedly.

Funds Medicare.

It they you're saying man if they try to repeal Obama care that money goes a ways well.

Sure of course but you know so -- the patch to the donut holes we don't need as much money perhaps.

Cut perhaps.

It's also complicated and convoluted and unfortunately I think the only answer is did -- the tax code and start over.

Well.

That -- they're gonna have a discussion about next year you know trichet should have.

We told you -- I'm retired from Deloitte and so I'm gonna get to watch that from -- -- fishing -- softened but.

And clearly we're gonna have a tax policy debate big time next year grant -- -- how much -- you gonna -- and -- we wanna get.

You your big lots of the tax community although I do hope you enjoy your fishing -- and what I will enjoy that had always been thought given as your opinion.

Always glad to do that -- it's a pleasure being with thanks for.

Load More