Get Ready To Work Harder
No sooner have all of us squeaked by yet another tax deadline that the specter of bad things to come has already arisen.
The Tax Foundation‘s “tax freedom day” was a welcome occasion to all of us, last week, coming this year on April 17. But as the Foundation recently noted, if Congress fails to act (more about that later), the roughly $500 billion in tax increases presently scheduled to occur January 1, 2013, could push next year’s “tax freedom day” to April 30 or possibly even later!
Recall that the infamous “Bush tax cuts,” recently extended for a couple of more years, will hit the skids this coming New Year’s Eve. Along with, of course, the now famous “payroll tax holiday,” and the annual circus surrounding the alternative minimum tax (AMT) patch.
And don’t forget, of course, the new exactions coming into the law next year as a result of the national health care legislation – a new tax on investment income, and yet another tax intended to try to salvage the slipping Medicare program.
So as you plan your schedule for 2013, don’t schedule any vacations during about the first five months of the new year. As the Tax Foundation sees it, (and not counting the new Obamacare taxes) you can plan to work at least an additional 11 or 12 days in 2013 just to pay your share of the following:
Individual income taxes 5.3 days
Corporate income taxes 3.4 days
Payroll taxes 2.5 days
Estate taxes 0.2 days
Total 11.4 days
And while we’re on the subject, get ready for one of the all-time “three ringers” of a circus, come the Congressional “lame duck” session, to be conducted between the November election day and somewhere around Christmas Eve of 2012. You all remember the last one of these at the end of 2010, when the Tea Partiers evicted a whole bunch of Congressional scofflaws in that year’s election.
With all of these tax measures on the table, we expect 2010 will pale by comparison to this year’s lame duck – regardless of which party makes the most inroads. Hold on to your hats for this one.
CONSULT YOUR TAX ADVISOR – This article contains general information about various tax matters. You should consult your CPA regarding the implications to your own particular situation.
Jeff Quinn, the author of this article, is a shareholder in Ashley Quinn, CPAs and Consultants, Ltd., with offices in Incline Village and Reno. He can be reached at 831-7288, welcomes comments at firstname.lastname@example.org, and invites readers to consider his other commentary at http://blog.nolo.com/taxes.