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Altair Gobo, certified financial planner, breaks down the tax fallout for going over the fiscal cliff.
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We're tired of talking about the negotiations the political infighting on -- fiscal cliff issue we want to know what happens to our money if -- -- got a flat out.
Over it which at this point seems likely.
Joining us now is I'll go well he is a certified financial planner he's got the numbers for us but -- -- go through this one at a time.
We go over that fiscal put flat out -- a cliff dive.
What happens to the income taxes -- -- number one -- Income tax you currently have six brackets that range from 10% to 35%.
We're now gonna go to five brackets that range from 15% to 39 point 6%.
So compression of brackets higher rates so everybody who currently pays federal income tax will come January pay more and more tax -- -- get next for.
The state taxes.
Probably one of the most unfair taxes there are but estate taxes are going up.
Currently 35%.
Going up as high as 55%.
But that's not the only problem.
You have exemption amounts that in 2012 -- five million dollars a person.
Portability meant that you can have portable if your spouse -- you would have ten million dollar resumption.
Going to one million dollar exemption no portability will will hold on now backs draconian.
Absolutely so.
To and a married couple.
One of the cut one a spouse dies the gotta stay to two million dollars for example America.
-- estate tax due and payable on that one passed away spouse power is the thing estate tax is not due until the second death OK all right however in the case of -- and the two million dollar -- state.
If they have a simple will win the husband gives everything for the wife got the wife now has two million dollars yep she doesn't automatically give the husband's exemption so she pays she gets a million dollar exemption and she she pays up to 55% on the one million over one million dollars and over.
That happens on January the first we're first if we go over the Clinton and that's federal estate tax we have a talk about state awareness actually -- -- -- -- -- -- Dividend tax what happens.
Dividend tax dividend tax are gonna go from.
15%.
They currently are ordinary income rates so depending on the tax bracket you're reading you could pay as -- 39 point six.
And dividend tax so you have a dividend on particulates topple whatever.
And -- high bracket you can pay more than double than -- paying now.
-- killing.
Capital gains taxes one -- -- this is -- beauty.
You know currently short term capital gains are taxed at ordinary income but long term capital gains anything over one -- is currently 15%.
Going to 20%.
So -- every single situation.
Increase taxes income taxes estate taxes dividend taxes capital gains taxes and yes payroll taxes which -- government.
All of them.
All of them going up on absolutely I want to summarize it like this if you pay federal income tax you're gonna pay more.
If you book you're gonna pay more is that accurate 1000%.
They estimate that the average Americans would pay about 3000 dollars more -- -- Thanks -- -- wonderful I'm sorry Canada that was very good good factual information I would appreciate that thank you much.
Gold reports where all we have this Friday morning whatever -- this fall in the face as well Robert we're actually down that's addressing 1616.
Power -- -- down three -- as of now this Friday morning.
