While all eyes are on the tight election race between President Barack Obama and Mitt Romney, income-seeking investors had better focus on tax strategies heading into 2013.
There are major worries as the tax cuts signed into law by President George W. Bush are set to expire at the end of this year, considering that control of the two houses in Congress is split. Obama has expressed a desire to extend the tax cuts again — except for individuals earning more than $200,000 a year and couples filing jointly who earn more than $250,000.
For investors, an obvious concern is that their top margin tax rates will increase in 2013. Taxpayers whose current marginal rates are 25%, 28% or 33% will see their top rates increase by 3%. Read