The tax changes will be LAW as of 1/1/2011 unless they are changed by Congress and the chance of that happening between now and then is a big fat zero.
The huge increase in taxes is going to hurt small business and cause people to move their income forward.
The changes in tax rates and various addtional requirements of that rotten health care bill are the two major reasons that employment growth remains so slow.
And what is even worse is the provisions for one dies:
"The return of the Death Tax. This year, there is no death tax. For those dying on or after January 1 2011, there is a 55 percent top death tax rate on estates over $1 million."
The author of the article also forgot to mention someother factors such as the capital value of the assets and how they are taxed.
Huge tax bills just from this section ofthe changes are going to cause major problems as small business does have a real lack of access to financing. How are you going to pay the bills if you can't get a loan: Sell the business. Who is going to buythe business with no money around?
IMO you'll see a huge fall off in economic activity going towards the end of the year - it has already started and this will be reflected in the use of oil and gas in the USA.
I suggest that for a good dicussion on oil and gas and other topics you visit:
http://feeds.feedburner.com/fsn
EKA Price at posting:
19.4¢ Sentiment: None Disclosure: Not Held
