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 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.

FSI PUSH

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.

REFORMS WANTED

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.

dmercado@investmentnews.com Twitter: @darla_mercado

0
Comments

What do you think?

View comments

Recommended for you

Sponsored financial news

Featured video

Events

Inside the first robo ETF

When it comes to exchange-traded funds, innovations come in all shapes and sizes. Check out Robo Global's Bill Studebaker discussing the first robo ETF.

Video Spotlight

Are Your Clients Prepared For Market Downturns?

Sponsored by Prudential

Video Spotlight

Path to growth

Video Spotlight

Path to growth

Latest news & opinion

What not to say to clients when the markets drop

Here's what advisers should steer clear of saying the next time stocks turn downward.

SEC bars former rep for alleged share price manipulation

George Thoreson tried to keep penny stock's price high to enable Nasdaq listing.

Nevada fiduciary law raises concerns among retirement professionals, brokerage industry

Critics complain that it conflicts with ERISA and SEC rules and has potential to spur other states to pass their own version of a fiduciary rule.

A special need for financial advice

Advisers don't have to be experts to help special needs families get a jump on lifelong planning.

Broker-dealers and RIAs at loggerheads over fiduciary rule delay

Companies and groups weighing in with comment letters have vastly different viewpoints on the delay's potential impact.

X

Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print