Hoisington Quarterly Review and Outlook, Fourth Quarter 2012

Each quarter we post the Hoisington Quarterly Review.  There team does a tremendous job of breaking down the future US and global economic outlook.  This quarter there is a keen focus on the increases in taxes and the effects that it could have or will have upon the US economy.  We had listed in a previous post the tax increases that were going to occur as part of the American Taxpayer Relief Act, we have listed them again below as part of the Hoisington Quarterly Review

1. A 4.6% increase in the top marginal tax rate to 39.6%;
2. A phase-out of itemized deductions (mortgage interest expense, various state taxes - income, property and sales - and charitable gifts) for high-earners;
3. A phase-out and elimination of personal exemptions for high-earners;
4. An increase in the tax rate to 20% for capital gains and dividends for highearners;
5. A 3.8% surtax on capital gains, dividends and other investment-type incomes for high-earners;
6. A 0.9% surtax added to the Medicare tax for high-earners;
7. A 2.3% excise tax on medical device manufacturers;