The CEO’s of more than 80 major companies are making a joint appeal to Congress to compromise on the budget deficit. Their suggestions on how we can avoid the fiscal cliff are the topic of our first article this week. We already know that the fiscal cliff will produce a number of significant tax changes on January 1, 2013. Our next article summarizes the tax rate changes you can expect. We then link to a discussion about the upcoming increase in Social Security payments, which will rise by 1.7% in January as a cost of living adjustment. The Insured Retirement Institute believes the costs could be offset by increasing Medicare premiums. Finally, we reference an article that points out a disconnect between consumer confidence and business confidence.  At a time when most businesses are cutting back on investment, consumers are increasing their spending.

CEOs Call For Tax Hikes, Spending Cuts To Reduce Deficits – The CEOs of more than 80 of America’s biggest and best known companies have made a joint appeal to Congress to bring the US deficit under control with a combination of spending cuts and tax increases.  They believe compromise and action are urgent. http://online.wsj.com/article/SB10001424052970203937004578076253372633058.html?mod=dist_smartbrief

Summary Of Major Tax Changes Effective 2013 – There have been repeated warnings of the so-called “fiscal cliff” approaching at years end, created by expiring tax cuts and the imposition of automatic spending reductions taking place on January 1, 2013.  This article summarizes the expiring tax cuts. http://www.clientwhys.com/blog/tax-professionals-prepare-for-expiring-tax-breaks-in-2013/

Social Security Raises Could Be Offset By Medicare Hikes – The Social Security Administration’s 1.70% cost of living adjustment for 2013 may be offset by Medicare Part B premium increases says the Insured Retirement Institute. http://www.fa-mag.com/fa-news/12619—social-security-cost-of-living-increase-could-be-offset-by-medicare-increase-says-iri.html

Disconnect Between Consumer Confidence And Business Confidence – Consumer confidence is now higher than it has been in five years.  For most businesses, it is a different story.  Companies of all sizes are cutting investment. http://www.businessweek.com/articles/2012-10-24/the-u-dot-s-dot-economys-personality-disorder

We hope you enjoy reading these articles along with us and that you find them informative.  Please forward this to your friends and family.

John R. Day and Bill W. Ennis

 

Disclosure – The articles mentioned in Mid Week with Day & Ennis are for information and educational purposes only.  They represent a sample of the numerous articles that the firm reads each week to stay current on financial and economic topics.  The articles are linked to websites separate from the Day & Ennis website.  The opinions expressed in these articles are the opinions of the author and not Day & Ennis.  This is not an offer to buy or sell any security.  Day & Ennis is under no obligation to update any of the information in these articles.  We cannot attest to the accuracy of the data in the articles.