A substantial number of tax cuts were implemented during the Bush Administration, and extended during the current Obama Administration.  But unless Congress acts these cuts will expire at the end of 2012.

The following is a link to a Congressional Research Service Report for Congress which reviews the affect these cuts have had and the impact that will result if they are allowed to lapse in 2013.

Expiring Tax Provisions 2012 (PDF)Of major import to many of us are the following:

1. The top marginal tax rate will increase from 35% to 39.6%
2. The capital gains rate will increase from 15% to 20%.
3. The availability of Itemised Deductions and Personal Exemptions will decrease.
4. The lifetime exemptions for estate taxes will decrease from $5,120,000 to $1,000,000.
5. Finally, the AMT “patch” will be eliminated, increasing the number of taxpayers subject to AMT.

The Report makes “interesting” reading for those so inclined.  For most it will provide good bed time reading – it will put you to sleep in seconds!  Happy Reading!