DeVine & Associates, LLC

Tel: 401.254.0151

  • Home
  • About
  • Services
    • Bookkeeping Services
    • Financial Statement Preparation
    • New Business Formation
    • Payroll Administration
    • Quickbooks® Consulting
    • Tax Services
    • Small Business Payroll Processing
  • Articles
  • Contact Us

November 19, 2012 by Mark DeVine

President Obama’s Bid on Taxes

6125710_sOnly one thing is clear about the fiscal cliff negotiations: President Obama will push hard to increase taxes on the rich. During a press conference on Wednesday he said he would not extend further a tax cut for folks who don’t need it, referring to the Bush Tax cuts.

Obama’s position is for a broad $4 trillion deficit-reduction plan that includes $1.6 trillion in new revenue from households making more than $200,000 ($250,000 if married).

New tax measures Obama has put to thought:

Let some Bush tax cuts expire: Obama wants to let the Bush tax cuts that apply to income over $200,000 expire.

  • If that happened, the top two tax rates — currently 33% and 35% — would increase next year to 36% and 39.6%.
  • Increasing investment tax rates on the rich, which would increase the rate to 20% for capital gains and to one’s top income tax rate for dividends. Both are currently taxed at 15%.

It is estimated that those changes would raise close to $1 trillion over a decade, assuming that the income exemption levels for the Alternative Minimum Tax are adjusted for inflation.

Limit tax breaks: The idea of limiting the value of deductions and exclusions that high-income households enjoys has been proposed.  With this idea, more than $500 billion would be raised.

Hike carried interest rates: The president has called for taxing carried interest as ordinary income, raising an additional $13.5 billion over a decade.

Impose millionaire minimum tax: Obama’s 2013 budget proposal calls on Congress to use his proposed “Buffett Rule” as a guiding principle when it embarks on tax reform. The rule would ensure that those making more than $1 million pay at least 30% of their income in taxes.

Enact business tax proposals: Obama proposed a host of smaller tax changes. Some of them would decrease revenue, and others would increase revenue.

To find out how we can help you make an appointment with us today at 401-254-0151. We look forward to hearing from you.

Filed Under: Taxes

About Mark DeVine

I have been in the tax and accounting profession since 1989. Before founding my own firm, I worked with the international accounting firm of KPMG, the Fleet Private Clients Group, and Bank of New England. I am also a member of the American Institute of Certified Public Accountants and the RI Society of CPAs.To discover how we can help you with taxes, payroll, bookkeeping and more, give me a call at 401.254.0151, or click the link to schedule your free 30 minute consultation today.

Contact Us

DeVine & Associates, LLC
386 Market Street, Unit #3
Warren, RI 02885-1627
Tel: 401.254.0151
Fax: 401.289.2418

Contact Us
  • Email
  • Facebook
  • LinkedIn
  • RSS

Business Services

  • Financial Statement Preparation
  • New Business Formation
  • Small Business Payroll Processing

Accounting Services

  • Bookkeeping Services
  • Quickbooks Consulting
  • Tax Preparation

Contact DeVine & Associates

Mark G. DeVine, CPA, CGMA
386 Market Street, Unit #3
Warren, RI 02885-1627
Tel: 401.254.0151
Fax: 401.254.0152

Copyright © 2022 · DeVine & Associates, LLC
Powered by Success Marketing · Log in