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Worst news about this, is that the tax hike fought for so long by Democrats, will take place on Jan. 1, 2013. Romeny won't become President until Jan. 20, 2013.
Just more damage to the country that he won't be able to prevent, and will just have to fix later after the destruction is done.
By JOHN D. MCKINNON
Updated October 31, 2012, 7:18 p.m. ET.
A looming increase in the capital-gains tax rate next year is fueling sales of some privately-held businesses. Many business owners—mostly founders who could gain a lot from a sale—are looking to close deals before next year, when the maximum tax on investment income is scheduled to rise from 15% currently to at least 23.8% on most capital gains, at least for higher-income households. Many sellers intend to convert their equity into retirement funds or just start anew.
"There's a kind of a panic on to get things done," said Beatrice Mitchell, co-founder of Sperry, Mitchell & Co. Inc., a New York investment bank that is advising Mr. Wolf on the sale.
BTW, remember the Federal budgets in the 1990s that Democrats take pride in having "balanced"? (Actually they didn't balance, but several came close, increasing the National Debt by relatively small amounts each year)
Guess why they did so well: Republicans passed legislation cutting the Capital Gains Tax rate. And after vetoing it three times, Clinton finally caved and signed it.
And for the next several years, so much more buying, selling etc. took place that huge amounts of Capital Gains tax revenue flowed into the government treasury, even at the lower rates. Revenue became so high that it nearly caught up with spending... and the vast majority of that revenue came from Capital Gains taxes.
Fast forward to Jan. 1, 2013. What will this Democrat tax hike do? It will RAISE the Capital Gains tax rate.
Bye-bye increased buying and selling. Bye-bye increased business. Bye-bye to the formerly-high revenues from capital gains... and with it, any chance of bringing the budget closer to balance and reducing the deficit.
Worst news about this, is that the tax hike fought for so long by Democrats, will take place on Jan. 1, 2013. Romeny won't become President until Jan. 20, 2013.
Just more damage to the country that he won't be able to prevent, and will just have to fix later after the destruction is done.
By JOHN D. MCKINNON
Updated October 31, 2012, 7:18 p.m. ET.
A looming increase in the capital-gains tax rate next year is fueling sales of some privately-held businesses. Many business owners—mostly founders who could gain a lot from a sale—are looking to close deals before next year, when the maximum tax on investment income is scheduled to rise from 15% currently to at least 23.8% on most capital gains, at least for higher-income households. Many sellers intend to convert their equity into retirement funds or just start anew.
"There's a kind of a panic on to get things done," said Beatrice Mitchell, co-founder of Sperry, Mitchell & Co. Inc., a New York investment bank that is advising Mr. Wolf on the sale.
Bye-bye increased buying and selling. Bye-bye increased business. Bye-bye to the formerly-high revenues from capital gains... and with it, any chance of bringing the budget closer to balance and reducing the deficit.
Whew...you mean I'll enjoy a respite from soaring rents?
President Obama wants to increase taxes for those making 250,000 or more and leave the Bush tax cuts in place for the rest of the country. Hand in hand with the tax increase on the upper 1% he has proposed significant tax breaks and incentives for small business. If businesses are selling based on fear of Obama's policies then they are obviously lousy businessmen. A smart business person would wait and be in a holding pattern to see how the future administration handles the fiscal cliff looming on Jan. 1st. Easiest fix would be for congress to pass an emergency measure to postpone the fiscal cliff for 6 months while the administration, republican or democrat, have a chance to figure it out and come to consensus. This is actually the likeliest scenario but republicans want to inject as much FEAR as they can in the American people. The whole Republican strategy is to inject as much FEAR as possible into every possible scenario they can. That's really the republican pundit's and poster's marching orders.
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