All I have been hearing over the past month when I turn on the news is how much taxes are increasing, how far down is the drop from the cliff, should we sell our stock, should we pay off expenses – what should a taxpayer do?
I have been getting calls from clients (and my mom) on what this all means to them. Of course the most important person is my mom, because she heard there is an extra tax on her whopping $500 in dividend income which – I explained – will not affect her. I’m not sure she believed me verbally, so maybe if it’s in writing she’ll believe it. After all, if it’s on the internet it must be true.
Check out Tony Nitti’s blog on Forbes.com, “Secrets Of the Fiscal Cliff Deal” to learn about the tax situation affecting all taxpayers.
The cost of the 3.8% tax on dividends and interest to certain taxpayers will come into play for the financial services industry. Investors will surely look at this as an additional “fund expense,” since it reduces their overall return on investment.