Burr Alert: The Other Side of the "Fiscal Cliff"

January 02, 2013

Congress began 2013 by passing "The American Taxpayer Relief Act of 2012" (the "Act") reflecting a plan negotiated by Vice President Biden and Senate Minority Leader Mitch McConnell (R-Ky.) to avoid a series of tax hikes scheduled to take effect upon the expiration of the "Bush tax cuts."

Some of the more significant features of the Act are as follows:

Income tax rates. The Act maintains the "Bush" tax rates for individuals with taxable income under $400,000 ($450,000 for married individuals, $425,000 for those filing as a head of household). Taxable income over and above these thresholds is taxed at the pre-Bush maximum rate of 39.6 percent.

Capital gains and dividends. Long term capital gains and dividend income of taxpayers having taxable income below the $400,000/$450,000 levels would continue to be taxed at the 15 percent rate while individual taxpayers above those income thresholds would be subject to 20 percent rate on long term capital gains and dividends. In addition, the higher income taxpayers will be subject to tax at the rate of 23.8 percent because of an additional 3.8 percent tax that was part of the included in the 2010 "Obamacare" health care legislation.

To read more about this topic, please see full article below

Download PDF


Legal Disclaimer:
No representation is made that the quality of services to be performed is greater than the quality of legal services performed by other lawyers.

Featured Attorneys

send article

TESTIMONIALS

  • “Scott helped us through a complex corporate issue in a very straightforward, competent and knowledgeable manner. His correspondence was timely and professional. I recommend his work highly.”

    -Scott Weaver

  • "In the course of his representation of my family’s business, I have become well acquainted with V. J.’s character, work capacity and perhaps most importantly, quality of work…I have been impressed by his work ethic and legal skills."

    - Executive Vice-President and General Counsel for regional manufacturing company

  • "Like any commercial litigation practice, it takes a while to get completely up to speed on how a client's corporation works. Once the understanding was there, Burr & Forman put their head down and worked very hard for excellent results."

    -Best Lawyers 2012

  • “I think a lot of him. He is reasonable and logical. He is very good at getting the deal done and doing so in a collaborative way as opposed to adversarial. I always refer to him and believe he will take care of the client.”

    -Chambers 2012

  • “I have utilized Burr and Forman for over 10 years. Amy is very responsive to our needs and thoroughly understands our business. Amy considers all solutions to our problems before rushing into a decision. She looks at all sides of the issue and can explain plainly what we are facing and how to remedy it. One of her greatest qualities is that she doesn’t overpromise on timelines."

    -Angelique Gisin, Director of Employee Administration, Tacala, LLC and Boom Foods, LLC