Au Revoir: The Year In Review 2013

Posted on December 28th, 2013 at 11:13 AM

By Robert L. Moshman

We entered 2013 in free fall, having plunged over the fiscal cliff. Thus, we began the January issue of this newsletter with a resolution for 2013: “Never invite Congress to a New Year’s Eve party again. They fight all night, they won’t go home, and what a mess they leave behind!” 

After a 20-hour marathon of debate, Congress adopted the American Taxpayer Relief Act of 2012 (ATRA). The good news was that the transfer tax system was stabilized with a unified estate and gift tax, a stepped-up tax basis for assets owned at death, and a significant lifetime exemption. The bad news was that a higher top tax rate and capital gains tax rate under ATRA, combined with the 3.8% Medicare surtax from the Patient Protection and Affordable Health Care Act, resulted in excessively high tax rates on some relatively small personal trusts.

The Congressional dysfunction of 2013 then manifested itself with a complete shutdown of government when terms of raising the national debt ceiling were disputed. Then came the rollout of healthcare.gov to implement the Affordable
Health Care Act, and the chaos and fallout from that will accompany us into the new year. One brighter note is that Congress achieved a bipartisan agreement to avoid the next budget crisis. The negative ramifications from this, however, are that deficit spending and the servicing of the national debt  are not sustainable. Barring substantive reforms, an economic day of reckoning must follow.

For more, read the full PDF here

Tags:

Return to Archive

TESTIMONIALS

Previous
Next

You guys are good!

Mike L.

LATEST NEWS AND ARTICLES

September 23, 2022
CFP Board Lifts Interim Suspension of Former UBS Advisor

The Certified Financial Planner Board of Standards (CFP Board) has lifted an interim suspension it had imposed against a former UBS advisor after criminal fraud charges against him were recently dismissed.

September 22, 2022
FINRA Penalizes Baird Over $100 Trading Commissions

The Financial Industry Regulatory Authority (FINRA) has ordered Robert W. Baird & Co. to pay $461,481 plus interest due to allegations that the firm overcharged its clients on thousands of equity transactions for at least one year.

September 21, 2022
FINRA Arbitrators Award Nearly $470,000 To Investors in UBS YES Product

A Financial Industry Regulatory Authority (FINRA) arbitration panel has ordered UBS to pay nearly $470,000 to clients who invested in a complex options strategy, known as the YES or Yield Enhancement Strategy.