Rich Catch a Break With Budget Deal Providing Deductions

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http://www.bloomberg.com/news/2013-01-04/rich-catch-a-break-with-budget-deal-providing-deductions.html

The budget deal passed by Congress Jan. 1 and signed into law by President Barack Obama the following day raises taxes on the income and investments of fewer high earners than Democrats proposed. The accord makes permanent the estate-and-gift tax exemptions that wealthy Americans raced to take advantage of when their fate was uncertain.

Also, Congress didn’t go as far as the president proposed in restricting top earners’ use of tax breaks such as mortgage interest and charitable deductions.

“The increases in taxes and limits to deductions are more favorable than expected,” said Christopher Zander, partner and head of wealth planning at Evercore Partners Inc. (EVR)’s wealth management unit. “They could have been worse for high net-worth taxpayers.”

Still, families earning $250,000 to $450,000 a year, who are now breathing a sigh of relief, might have more of a tax pinch in 2013 than they anticipate. And those earning more than $450,000 a year may be better off than they expect.

[Egalitarian Thug]

1. Imagine that. Who could've predicted...

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2. ...