Advisers see tax hike part of cliff fix

Deduction reductions are on the horizon, according to many

Dec 2, 2012 @ 12:01 am

By Darla Mercado

Financial advisers expect that any fiscal cliff deal will include steeper taxes for the wealthy.

The issue has been top-of-mind since President Barack Obama won re-election. Tensions have been rising as congressional members of both parties reportedly are strengthening their respective positions on entitlements and taxes.


Financial advisers got their chance to chime in last week as the Financial Services Institute Inc. encouraged its 35,000 adviser members to reach out to lawmakers and urge them to come to a resolution, according to spokesman Chris Paulitz.

Nevertheless, advisers generally think that lawmakers are on the right track to avert the fiscal cliff. The FSI surveyed 2,454 of its adviser members in November and found that 79% predict that a deal will be reached before Jan. 1.

Advisers also think that such a plan will include some bad news for individuals making at least $200,000 a year and families earning at least $250,000. Seventy-two percent of the surveyed advisers predicted not only higher marginal tax rates for those people but also curbs on deductions.


In addition, 70% of advisers said that higher earners shouldn't be taxed at a higher rate, and nearly the same percentage said that they think those higher taxes ultimately would hurt saving and investing. Although 58% of participants want to keep the capital gains tax at 15%, about 30% are amenable to an increase to 20%.

Ninety percent said they think any deal should include reforms for both the tax code and entitlement programs, such as Medicare. Twitter: @darla_mercado


What do you think?

View comments

Recommended for you

Sponsored financial news

Featured video


The #MeToo movement and the financial advice industry

Attendees at the Women to Watch luncheon commend the #MeToo movement for raising awareness about the issue of sexual harassment and bringing women together.

Latest news & opinion

Lightyear Capital's Donald Marron said to be in the hunt for Cetera Financial Group

The veteran brokerage executive, who bought Advisor Group in 2016, owned Cetera once before.

What to watch for next with the DOL fiduciary rule

Much hinges on whether the Labor Department appeals the 5th Circuit decision by April 30.

Social Security benefits losing buying power

Low inflation combined with rising Medicare costs threaten the adequacy of seniors' income.

Finra looks to streamline broker-dealer exams

CEO Robert Cook says three examination teams may be consolidated.

The 401(k) robo-revolution is here

Could human advisers be displaced as digital-advice firms use technology to deliver services to plan sponsors and participants?


Hi! Glad you're here and we hope you like all the great work we do here at InvestmentNews. But what we do is expensive and is funded in part by our sponsors. So won't you show our sponsors a little love by whitelisting It'll help us continue to serve you.

Yes, show me how to whitelist

Ad blocker detected. Please whitelist us or give premium a try.


Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print