As a Money Morning Member, you'll get our top financial news stories delivered straight to your inbox – every weekday morning.
Cancel at any time | How it works
Welcome to Money Morning - Only the News You Can Profit From.
Private Briefingwith WILLIAM PATALON III, Executive Editor
We love eBay Inc. (Nasdaq: EBAY).
We love activist investors.
And we really love corporate spin-offs.
Getting all three in one deal is the kind of “investing trifecta” that comes along only once in a great while.
Click here and learn how to get exclusive access to the backdoor way to make a quick 149% from the Alibaba Shockwave Effect. Don't worry... this play has nothing to do with the "obvious" companies that've been bandied about on the internet. Go here for full details.
Members log in:
Not a member yet? Sign up here or learn more.
Chief Investment Strategist
33-year seasoned market analyst and professional trader with highly accurate track record. Specialty in global markets.
Global Energy Strategist
35-year expert in oil and gas policy, risk assessment, and emerging market economic development.
Capital Wave Strategist
30-year CBOE trader, market maker, and retired hedge fund honcho. Helped launch the Volatility Index in 1993.
Defense + Tech Specialist
30-year veteran of tech markets with a Rolodex of Silicon Valley CEOs. Pulitzer nominee. Uncovered rare earths crisis.
30-year veteran analyst of business, economics, and financial markets. Award-winning author of "Contrarian Investing."
BioScience Investment Specialist
Gifted researcher with 20 years' experience tracking bioscience and pharma stocks. Master of the FDA approval process.
Small-Cap Investing Specialist
Known for his pioneering research on the seven "sparks" that trigger explosive profits in the small-cap sector.
20-year commodity guru and portfolio advisor. Top authority on metals + mining stocks. Head- quartered in Canada.
There are a slew of 2013 tax law changes ready to go into effect if Congress fails to reach an agreement on the fiscal cliff.
According to the Tax Policy Center, almost 90% of taxpayers, both rich and poor, will see their household tax bill increase by about $2,000 next year with the top 1% seeing a tax increase on average at $121,000.
In other words, take-home pay will decrease, which has been referred to as "Taxmageddon,"with the middle class especially hard hit from the changes.
But that's just a small piece of the large puzzle of 2013 tax law changes. Here's a more detailed look at what could hit your income, investments and savings.
Capital Gains Rate
Thinking about selling that vacation home or selling some stock? You may want to do it before year's end to avoid a higher tax rate.
Unless there's a congressional truce, the capital gains rate will increase to 20% in January, up from 15% now.
This will not affect qualified retirement plans such as IRAs or 401(k) plans.
For those with higher income levels, they'll also incur a 3.8% surtax on capital gains, dividends, royalties and real estate sales thanks to the Affordable Care Act.
Add in a limit on itemized deductions that will kick in for 2013 and there is an additional 1.2% rise.
Do the math and this means the effective capital gains rate will hit 25% on Jan. 1.
The higher income has been defined as $200,000 for a single filer and $250,000 for a married couple.
Taxpayers will say goodbye to the 2% payroll tax reduction.
This means a $50,000 salary could incur $1,000 more in taxes with a higher income filer making more than $108,000 would pay $1,950 more on average, reported the Tax Policy Center, or a 0.9% tax on earnings.
Higher is defined as more than $250,000 for married filers and more than $200,000 for singles.
The remaining content is exclusively for Money Morning subscribers. To gain access, enter your email address: