re: #50 Charles Johnson

I posted this earlier, but the fiscal cliff isn’t going to be the thing that hits taxpayers hardest or even first. The higher tax rates in effect next year would require higher withholding, but that could be turned around fairly quick.

First thing that will put a serious dent is the fact that Congress hasn’t taken up the AMT patch. Without it, income as low as $45k for a married couple could be hit with AMT liability. Potentially affecting 30 million taxpayers. Realistically, if the patch isn’t done before February 1, I’d see real problems because taxpayers generally begin filing in earnest after that date. Added costs and time for everyone involved.

Figure that the AMT patch will be included in any deal, even though it should get a permanent fix.

Then there are a few other things - dairy prices could spike because Congress has to act on that archaic leftover from the Depression years.

Unemployment benefits will expire unless extended. That could hit a few million people too.

In some ways, the AMT patch might be the thing that gets the deal done. Watch that it gets wrapped into the deal on taxes.