2012 Income Analysis

The Fiscal Cliff Deal

With the new year, the much anticipated fiscal cliff was partially averted, partially delayed as U.S. leaders reach some sort of compromise.  It makes permanent the Bush administration's tax rates for those earning less than $400k per year ($450k for couples) but raises rates on those earning more than those thresholds.  Above that, the income tax rate increases from 35% to 39.6%, bringing back the top bracket from the Clinton era.  Dividends and capital gains will also be taxed for people in that bracket at a new 20% level instead of the normal 15%.  Obama is now able to say that he succeeded in raising income rates on the wealthiest of Americans but not his initial target of those earning more than $200k annually.  Also, the temporary lower payroll tax rate implemented in 2011 (lowered to 4.2% from 6.2%) has also expired which will cost $50 a month for those making $30k a year and about $190 a month for those making around $114k.  Itemized deductions will also be capped for those making more than $250k ($300k for couples).  Taxes on inherited estates over $5 million will also increase to 40% from 35%.

Buffett Quote Series #2

Here is the second part to my Buffett Quote series.

"I buy expensive suits.  They just look cheap on me."

"Someone is sitting in the shade today because someone planted a tree a long time ago."

American Express Small Business Saturday

Forget Black Friday!  If you have an American Express card, I urge you to take advantage of their Small Business Saturday promotion.  Sign up on their website and you can get a $25 credit for buying something at a small business.  Most local restaurants and stores count so treat yourself to a nice meal while helping your local businesses.  Just make sure you spend at least $25 in one transaction after registering to get the credit.  It is too good a deal to pass up!

Buffett Quote Series #1

So I haven't posted in almost a month now mainly because I've been pretty busy with school work.  I thought I'd try to do a series of posts on something I've been wanting to do for a while which is talk about some of the great quotes from one person I admire greatly (along with many others), Warren Buffett.  Here is the first part of my series with two quotes I pulled.