Excerpts:
“Business owners and investors are rapidly maneuvering to shield themselves from the prospect of higher taxes next year, a strategy that is sending ripples across Wall Street and broad areas of the economy.”
“In my 30 years in practice, I’ve never seen such a flood of desire and action to transfer a business and cash out,†said Kenneth K. Bezozo, a partner in New York with the law firm Haynes and Boone. “We’re seeing a watershed event.â€
“Fears about the fiscal impasse in Washington, along with anxiety about fading corporate profits and weakening economies abroad, have pushed the benchmark Standard & Poor’s 500-stock index down about 5 percent since the election.”
“The top rate on dividends, for example, could climb to 39.6 percent from 15 percent if no action is taken. Capital gains taxes, which now top out at 15 percent, could rise above 20 percent, many financial advisers say. Most investment income will also be subject to a 3.8 percent charge to help pay for President Obama’s health care law.”
“John Moorin, the founder of a medical equipment company near Indianapolis, said he sold about $650,000 in dividend-paying stocks like McDonald’s and Coca-Cola a few days after the election, worried about the potential increase in taxes. “I love these companies, but I’m so scared that now all of the sudden I’m going to get taxed at such a rate with them that they won’t be worth anything,†Mr. Moorin said.
“In the meantime, he added, it was “very difficult to do long-range planning with a government that moves as much as this does on so many issues.â€
“Kristina Collins, a chiropractor in McLean, Va., said she and her husband planned to closely monitor the business income from their joint practice to avoid crossing the income threshold for higher taxes outlined by President Obama on earnings above $200,000 for individuals and $250,000 for couples.
Ms. Collins said she felt torn by being near the cutoff line and disappointed that federal tax policy was providing a disincentive to keep expanding a business she founded in 1998. “If we’re really close and it’s near the end-year, maybe we’ll just close down for a while and go on vacation,†she said.”
“Some business owners say they are holding off on hiring plans because they expect tax rates to rise. Dyke Messinger, chief executive of Power Curbers in Salisbury, N.C., said he would like to fill four slots at his construction equipment company but would only hire three people because he anticipated that his tax bill would rise by $100,000.”
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USI’s Historic Southern Indiana and Indiana’s Historic Pathways National Scenic Byway invites the public to attend Indiana’s Historic Pathways annual meeting from 4 to 5:30 p.m. on Thursday, November 29 at the Lawrence County Museum of History located at 929 15th Street in Bedford, Indiana. The byway is in the process of installing roadway signs and securing 501(c)(3) status and will be meeting to plan future projects.
