Will this portend a return to the playground of malfeasance of the 90’s, i.e. “retained earnings” because divee rates were through the moon? Time will tell....
While it is OK to warn 'the public' about this, but unless Rs in congress want O to leave office being seen as a popular successful POTUS they better not:
1) Save O on dividend or capital gains taxes (any investment taxes)
2) Save O on tax rates (exception below)
3) Save O on entitlement reform
4) Save o On the automatic budget cuts.
For items 1 to 3 Dems rhetoric says these are are only helping the rich and hurting the middle class. On the automatic budget cuts #4 Republicans agreed to and passed these cuts just last year but delayed them until AFTER Os re-election, great move. .
Having won re-election Obama is looking towards his legacy and now he has some wiggle room to diss his base on some compromise to do that,
If all these items 1 to 4 were to go into effect then most predictions are the country would go back into recession.
But this does us no good if congressional Republicans get/take the blame it AGAIN, And they are sure good at that.
All Republicans have to do is to temporarily extend just enough of the tax cuts to ward off the accusation of ‘defending the rich by attacking the middle class’. I am thinking $100K income or less as it is anice round number.
Doing that requires NO R votes for tax increases.
Let Obama/Dems argue why we need the rest of 1 to 4. It's his legacy after all. And if he doesnt make the case for those then the single R message must be that 'Obama raised those taxes and cut military spending destroyed the economy and proved that his policies are a disaster'.
As a life long bookkeeper, I would advise any client I had to so exactly this.
Issue their dividends early...beat the tax clock.