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Fiscal Cliff

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Callput
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Fiscal Cliff

Postby Callput » Mon, 19 Nov 2012 4:04 pm

Ever since Obama has got re-elected, the US market has been tanking and I have been hearing the latest buzzword Fiscal Cliff so often. Finally in one of the news articles I got to know its meaning. :)

Here's the proper definition:
http://en.wikipedia.org/wiki/United_States_fiscal_cliff

What do you guys think, is in store for the next year? Would you put your money in equities or not? :)

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Sergei82
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Postby Sergei82 » Mon, 19 Nov 2012 4:19 pm

Obama's fault?

Callput
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Postby Callput » Mon, 19 Nov 2012 4:34 pm

Sergei82 wrote:Obama's fault?


Dont know, but surely Obama seems less business friendly than both Bush and Romney.

Marc Faber once said "I was negative of Mr. Bush but I think Mr. Obama makes him look like a genius" that says a lot :lol:

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zzm9980
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Re: Fiscal Cliff

Postby zzm9980 » Mon, 19 Nov 2012 5:06 pm

Callput wrote:Ever since Obama has got re-elected, the US market has been tanking and I have been hearing the latest buzzword Fiscal Cliff so often. Finally in one of the news articles I got to know its meaning. :)

Here's the proper definition:
http://en.wikipedia.org/wiki/United_States_fiscal_cliff

What do you guys think, is in store for the next year? Would you put your money in equities or not? :)



One of my concerns, voiced previously on this forum, is that the US Expat earned income exclusion will be one of the things they cut to make up this "gap" so they can keep the Bush tax cuts. That would directly cost me (and most of us on P1+) S$20,000 a year based on last years rates. Quite a painful hit.

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Sergei82
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Re: Fiscal Cliff

Postby Sergei82 » Mon, 19 Nov 2012 6:02 pm

zzm9980 wrote:
Callput wrote:Ever since Obama has got re-elected, the US market has been tanking and I have been hearing the latest buzzword Fiscal Cliff so often. Finally in one of the news articles I got to know its meaning. :)

Here's the proper definition:
http://en.wikipedia.org/wiki/United_States_fiscal_cliff

What do you guys think, is in store for the next year? Would you put your money in equities or not? :)



One of my concerns, voiced previously on this forum, is that the US Expat earned income exclusion will be one of the things they cut to make up this "gap" so they can keep the Bush tax cuts. That would directly cost me (and most of us on P1+) S$20,000 a year based on last years rates. Quite a painful hit.


Immediately take out and give? Or upon ur return home?

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sundaymorningstaple
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Postby sundaymorningstaple » Mon, 19 Nov 2012 8:14 pm

Every years Tax assessment would have an additional 20K of taxes added to it per year on top of what they are already paying!

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nakatago
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Postby nakatago » Mon, 19 Nov 2012 11:40 pm

Would you guys fall under the 250k and over or the 500k and over brackets? I think that's one of the thresholds they want to use if they're extending the tax cuts. You go over, you pay pre-2001 rates, if I remember haphazardly.

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zzm9980
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Postby zzm9980 » Mon, 19 Nov 2012 11:55 pm

nakatago wrote:Would you guys fall under the 250k and over or the 500k and over brackets? I think that's one of the thresholds they want to use if they're extending the tax cuts. You go over, you pay pre-2001 rates, if I remember haphazardly.



In a normal (most) year, I wouldn't fall into that bracket. What they're proposing is to eliminate "loopholes" and deductions that benefit niche groups in order to fiscally balance the overall bottom line and let them keep the Bush cuts (a few percent) in place. Things like the famous "hummer deduction" (which I think has already been removed). Unfortunately, Expat income exclusion is sometimes talked about as also being on their target list. It's mostly talked about on conservative expat blogs who fear losing it, but it still enough to worry me.

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Postby nakatago » Tue, 20 Nov 2012 8:51 am

zzm9980 wrote:
nakatago wrote:Would you guys fall under the 250k and over or the 500k and over brackets? I think that's one of the thresholds they want to use if they're extending the tax cuts. You go over, you pay pre-2001 rates, if I remember haphazardly.



In a normal (most) year, I wouldn't fall into that bracket. What they're proposing is to eliminate "loopholes" and deductions that benefit niche groups in order to fiscally balance the overall bottom line and let them keep the Bush cuts (a few percent) in place. Things like the famous "hummer deduction" (which I think has already been removed). Unfortunately, Expat income exclusion is sometimes talked about as also being on their target list. It's mostly talked about on conservative expat blogs who fear losing it, but it still enough to worry me.


Don't you have congresscritters or lobbyists for that?

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Postby sundaymorningstaple » Tue, 20 Nov 2012 9:02 am

Depends on who has the congresscritters with the deepest pockets! :mad:

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zzm9980
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Postby zzm9980 » Fri, 23 Nov 2012 9:26 am

Nice post with info-graphics discussing this:

http://blogs.wsj.com/washwire/2012/11/2 ... -graphics/

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Postby zzm9980 » Fri, 23 Nov 2012 9:54 am

Btw, the top proprosal "Limit value of deductions/exclusions" to 28% would hit US expats directly, as we currently have an exclusion of ~US $94k. The only expats who wouldn't feel it would be those currently making US $336k of earned income (direct salary, not bonus or anything) per year.

And interestingly, it is the Republicans pushing the limitation of exclusions and deductions, not Obama:

http://blogs.wsj.com/washwire/2012/11/1 ... ion-limit/

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Postby Mi Amigo » Fri, 23 Nov 2012 3:58 pm

OIC. That cliff. I thought you meant this:

The Young Ones - Summer Holiday - Part 4
Last edited by Mi Amigo on Fri, 23 Nov 2012 5:12 pm, edited 1 time in total.
Be careful what you wish for

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nakatago
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Postby nakatago » Fri, 23 Nov 2012 4:52 pm

Mi Amigo wrote:OIC. That cliff. I thought you meant this (scroll to 2:50):

The Young Ones - Summer Holiday - Part 4


FYI, you can link to youtube videos and directly jump to a specific time: http://www.mattcutts.com/blog/link-to-y ... te-second/

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Postby Strong Eagle » Fri, 23 Nov 2012 4:57 pm

Callput wrote:Dont know, but surely Obama seems less business friendly than both Bush and Romney.


How is that? Name some none "business friendly" policy. Are you referring to tighter restrictions on the wall street thieves? Or environmental policy that keeps our environment from being ripped to shreds? Or, are you referring to pay equality for men and women?


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