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The Potomac Institute’s Greg Valliere on the possible changes for taxes in 2013.
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Increases coming next yeah we've got to avoidance measures that are in the news -- -- want.
200 companies -- mall will pay dividends this year about avoids the -- dividend tax next year took.
Charities are seeing big increases in contributions now in case the deduction is limited next -- yeah.
Joining us now is Greg value that at the Potomac research group we don't -- in -- consistently the election I don't think public.
I think once but it's you're out that -- but it's great to see story -- events I am I am well I'm a recovering from the election -- -- but just.
Africa Latin America -- -- what I'm seeing here with these special dividends in this charitable speed up for this year.
I'm saying relatively wealthy people trying to avoid the tax increases that they know are gonna hit him.
Next yeah this is tip of the rich avoiding the tax on the rich policy isn't.
Well who can blame them out of this is a classic example of unintended consequences when you start.
Talking about raising taxes people take action to reduce there liability that's human nature that's common sense.
On this -- the -- used site Stewart.
Two quick comments number one.
You can be pretty certain dividends and capital gains will be taxed higher next year.
Because of that three point 8% surtax that was part of obamacare that that you can pound on the the second story.
Charitable contributions of the mortgage deduction that's that's a possibility but that is not as certain as the three point 8% surtax.
I don't think we're gonna see any restriction on the mortgage interest deduction.
I don't drink that's gonna happen only 27%.
Of people claim with the mortgage interest deduction is a relatively small -- nothing's gonna.
80 I don't rule out some kind of restriction on second homes -- -- vacation -- something like that.
But any direct assault on that and I would add any direct assault on the Muni bond deduction to me is very unlikely.
-- what everybody Kia and I'm sure our viewers are really that fiscal cliff fatigued to death that you know.
It's it's a real -- an awful we know it but I -- -- address the issue in big picture tones with you -- -- -- big picture -- I think that at the end of the day.
We will have higher taxes on wealthy people.
Promises.
To cut spending somewhere down the road.
And -- don't worry about the debt ignore it I think that's the outline of a big picture deal what do you side.
I sort of agree Stuart there will be higher taxes.
I do think the Republicans will extract Koppel.
Of entitlement reforms and new way to calculate the cost of living adjustment in Social Security.
Maybe a higher payments by beneficiaries were wealthier.
And Medicare and then finally the last point you make is the really intriguing one that's the debt ceiling in my hunch is.
The Republicans will cave on taxes and they'll come back to fight again later in the winter.
On on the debt ceiling and they could really extract major spending cuts by late winter.
You don't think the president will get the blank check but he wants no debt ceiling he wants no debt ceiling you don't think you'll get it.
That's never -- to fly it's way too ambitious he's not gonna try to do this by executive authority.
So there's a another crisis will be talking about this solved during.
January and February the next crisis is when the debt ceiling really expires in late February that's where the Republicans will get a lot.
All right Greg we always appreciate you being with us come again soon thank you -- that --
