S&P 500 futures -0.3%, giving up overnight gains in the last couple of hours ahead of a...


S&P 500 futures -0.3%, giving up overnight gains in the last couple of hours ahead of a last-ditch cliff-avoidance meeting today between the President and congressional leaders. Europe slides: Stoxx 50 -1%, led by Spain -1.7%.

Comments (15)
  • kwm3
    , contributor
    Comments (2454) | Send Message
     
    Much ado about nothing. This is the future, and this is merely the first step. Higher taxes, lower government spending. Lower GDP, hopefully a soft landing to reduced economic activity.

     

    For those who post-date pensions, and who need to save almost every penny if they hope to retire, get ready for a much reduced standard of living. Already happening clearly in the PIIIGS and leading to emigration.
    28 Dec 2012, 07:24 AM Reply Like
  • june1234
    , contributor
    Comments (4357) | Send Message
     
    Yeap . In an economy 70% consumer based for the last 25 years this gov. has pursued a policy of exporting jobs overseas we all enjoy our cheaper imports. They made up the difference for via massive increases in gov spending and a $1.4 trillion housing credit bubble which is gone.Nobody noticed or cared when their homes were going up and up in our instant gratification culture. Here were are; hundreds of billions of $$ in corp profits sitting offshore while banks play continue to monopoly in their $700 trillion derivatives market, much of which not available for public trading. Great business plan
    28 Dec 2012, 09:41 AM Reply Like
  • User 353732
    , contributor
    Comments (5158) | Send Message
     
    Big Money need not worry.
    The "solution" will be more Big Government; more bad public debt, more fake money, more class warfare ; less real wealth creation and an even more compressed privately employed middle class.
    This is what the Regime wants and in the US Soviet what the Regime wants, the Regime gets
    28 Dec 2012, 07:39 AM Reply Like
  • 22thoroughbred
    , contributor
    Comments (793) | Send Message
     
    The 1 thing about this is that I do not believe many realize if/when a deal is not reached all the tax rates are RETROACTIVE to 1/1/2012!!!

     

    Thus everyone who gets a 1099 will be UNDERPAID on withholding and will have to pay when they file. Thus those that do not have any "extra" and make over just 50k will need to pay ~$2000, $100k pay ~$4500, yes approx 4%-5% of their gross, how many reading this knew that??? Here's a link:

     

    http://bit.ly/VaUm9R
    28 Dec 2012, 08:27 AM Reply Like
  • tom_t
    , contributor
    Comments (318) | Send Message
     
    That is simply not true. You are misunderstanding the article.
    28 Dec 2012, 09:00 AM Reply Like
  • Tack
    , contributor
    Comments (16281) | Send Message
     
    Tax rates retroactive? If so, provide link.
    28 Dec 2012, 09:00 AM Reply Like
  • 22thoroughbred
    , contributor
    Comments (793) | Send Message
     
    I provided the article for the chart NOT whatever is written
    28 Dec 2012, 10:28 AM Reply Like
  • 22thoroughbred
    , contributor
    Comments (793) | Send Message
     
    Don't have a specific link, learned this from my CPA
    28 Dec 2012, 10:30 AM Reply Like
  • GaltMachine
    , contributor
    Comments (2070) | Send Message
     
    Tack,

     

    I read this article this morning on CNBC:

     

    http://bit.ly/10sfRJw
    "There's a common misperception about the fiscal cliff— that the tax increases only apply to 2013. Not true.

     

    In a cruel epilogue to 2012, roughly 28 million families would owe the IRS $86 billion more than they anticipated for this year should the country plunge off the cliff, according to the nonpartisan Tax Policy Center.
    Those families would face the "Alternative Minimum Tax," which was introduced in 1969 to supposedly guarantee that wealthy Americans could not elude the taxman. But the AMT not only flopped, it was never indexed to inflation. So with each passing year, it seeps away from high society and into the wallets of Target and Wal-Mart shoppers. That sets up a disaster for April 15."
    28 Dec 2012, 11:25 AM Reply Like
  • 22thoroughbred
    , contributor
    Comments (793) | Send Message
     
    Thank you for the help
    28 Dec 2012, 11:46 AM Reply Like
  • Tack
    , contributor
    Comments (16281) | Send Message
     
    22:

     

    I can find no mention of retroactive (to FY2012) effects of tax expiration, except mentions that Congress might have to reinstate Bush cuts retroactively, if they expire.

     

    Your CPA apparently has it wrong unless you or another can provide documentary evidence.
    28 Dec 2012, 12:41 PM Reply Like
  • Tack
    , contributor
    Comments (16281) | Send Message
     
    Galt:

     

    Thanks for that adjunct.

     

    The AMT issue has only a marginal effect and for a limited number of people, if it comes into play at all. That's far different than stating that taxpayers, across the board, are going to have post-cliff rates applied retroactively to 2012. That's not happening.
    28 Dec 2012, 12:46 PM Reply Like
  • 22thoroughbred
    , contributor
    Comments (793) | Send Message
     
    I am not going to try to convince you I am or my CPA is correct, we will agree to disagree and if no deal is done we'll both find out soon enough. BUT, be prepared
    28 Dec 2012, 01:35 PM Reply Like
  • divinecomedy
    , contributor
    Comments (465) | Send Message
     
    I am betting there will be a deal towards the end of the day. The market will probably explode .....
    28 Dec 2012, 08:32 AM Reply Like
  • 22thoroughbred
    , contributor
    Comments (793) | Send Message
     
    I've done this for a very long time and even if there is a "deal" it will be a BS nothing truly changes deal that will disappoint investors, the general population are ignorant and anything that is announced they will be happy. I am naked PUTS and exposed to over $1.5mm in stock if we drop more than 4-5% and I am very very concerned. But remember in the ways of our politicians, they still have til MONDAY
    28 Dec 2012, 08:38 AM Reply Like
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