Looming tax hike motivates business owners to sell

[Little-Acorn]

Worst news about this, is that the tax hike fought for so long by Democrats, will take place on Jan. 1, 2013. Romeny won't become President until Jan. 20, 2013.

Just more damage to the country that he won't be able to prevent, and will just have to fix later after the destruction is done.

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http://online.wsj.com/article/SB10001424052970204789304578088931525397120.html?m od=WSJ__MIDDLENexttoWhatsNewsFifth

Looming Tax Hike Motivates Owners to Sell

By JOHN D. MCKINNON
Updated October 31, 2012, 7:18 p.m. ET.

A looming increase in the capital-gains tax rate next year is fueling sales of some privately-held businesses.

Many business owners—mostly founders who could gain a lot from a sale—are looking to close deals before next year, when the maximum tax on investment income is scheduled to rise from 15% currently to at least 23.8% on most capital gains, at least for higher-income households. Many sellers intend to convert their equity into retirement funds or just start anew.

Bert Wolf of Acetylene Oxygen in Harlingen, Texas, says he plans to sell his compressed-gas business before 2013. Many business owners are looking to close deals by year's end.
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"It just made more sense for me to take my chips off the table and go do something else," said Bert Wolf, 60 years old, who has an agreement to sell his compressed-gas business, Acetylene Oxygen Co. of Harlingen, Tex., before year-end.

Mr. Wolf added that if he waited until after the tax increase to sell, he would have to expand the business at the current rate "for at least 3 or 4 more years to achieve the same after-tax sales dollar." He is profiting on the sale of his business to Praxair Inc., PX +2.04%a public company.

"There's a kind of a panic on to get things done," said Beatrice Mitchell, co-founder of Sperry, Mitchell & Co. Inc., a New York investment bank that is advising Mr. Wolf on the sale.

[Robert A Whit]

Worst news about this, is that the tax hike fought for so long by Democrats, will take place on Jan. 1, 2013. Romeny won't become President until Jan. 20, 2013.

Just more damage to the country that he won't be able to prevent, and will just have to fix later after the destruction is done.

------------------------------------------

http://online.wsj.com/article/SB10001424052970204789304578088931525397120.html?m od=WSJ__MIDDLENexttoWhatsNewsFifth

Looming Tax Hike Motivates Owners to Sell

By JOHN D. MCKINNON
Updated October 31, 2012, 7:18 p.m. ET.

A looming increase in the capital-gains tax rate next year is fueling sales of some privately-held businesses.

Many business owners—mostly founders who could gain a lot from a sale—are looking to close deals before next year, when the maximum tax on investment income is scheduled to rise from 15% currently to at least 23.8% on most capital gains, at least for higher-income households. Many sellers intend to convert their equity into retirement funds or just start anew.

Bert Wolf of Acetylene Oxygen in Harlingen, Texas, says he plans to sell his compressed-gas business before 2013. Many business owners are looking to close deals by year's end.
.
"It just made more sense for me to take my chips off the table and go do something else," said Bert Wolf, 60 years old, who has an agreement to sell his compressed-gas business, Acetylene Oxygen Co. of Harlingen, Tex., before year-end.

Mr. Wolf added that if he waited until after the tax increase to sell, he would have to expand the business at the current rate "for at least 3 or 4 more years to achieve the same after-tax sales dollar." He is profiting on the sale of his business to Praxair Inc., PX +2.04%a public company.

"There's a kind of a panic on to get things done," said Beatrice Mitchell, co-founder of Sperry, Mitchell & Co. Inc., a New York investment bank that is advising Mr. Wolf on the sale.

Dat make Obama no neva mind.

Who thinks Obama worries over things like this?

That man is arrogant and has no conscience.

Besides he would say so what, some new owner wil take it over. And get the company to pay more taxes.

Dat jest be da way it be.

[Little-Acorn]

BTW, remember the Federal budgets in the 1990s that Democrats take pride in having "balanced"? (Actually they didn't balance, but several came close, increasing the National Debt by relatively small amounts each year)

Guess why they did so well: Republicans passed legislation cutting the Capital Gains Tax rate. And after vetoing it three times, with an election coming, Clinton finally caved and signed it.

And for the next several years, so much more buying, selling etc. took place that huge amounts of Capital Gains tax revenue flowed into the government treasury, even at the lower rates. Revenue became so high that it nearly caught up with spending... and the vast majority of that revenue came from Capital Gains taxes.

Fast forward to Jan. 1, 2013. What will this Democrat tax hike do? It will RAISE the Capital Gains tax rate.

Bye-bye increased buying and selling. Bye-bye increased business. Bye-bye to the formerly-high revenues from capital gains... and with it, any chance of bringing the budget closer to balance and reducing the deficit.

[Robert A Whit]

BTW, remember the Federal budgets in the 1990s that Democrats take pride in having "balanced"? (Actually they didn't balance, but several came close, increasing the National Debt by relatively small amounts each year)

Guess why they did so well: Republicans passed legislation cutting the Capital Gains Tax rate. And after vetoing it three times, with an election coming, Clinton finally caved and signed it.

And for the next several years, so much more buying, selling etc. took place that huge amounts of Capital Gains tax revenue flowed into the government treasury, even at the lower rates. Revenue became so high that it nearly caught up with spending... and the vast majority of that revenue came from Capital Gains taxes.

Fast forward to Jan. 1, 2013. What will this Democrat tax hike do? It will RAISE the Capital Gains tax rate.

Bye-bye increased buying and selling. Bye-bye increased business. Bye-bye to the formerly-high revenues from capital gains... and with it, any chance of bringing the budget closer to balance and reducing the deficit.

Another thing.

Demographics favors fewer and fewer people moving to the USA to stay permanently.
Birth rates for the majority do not sustain current population and only immigrants boost it enough that we virtually stay even. Population grown is vastly slower than it was 50 years back. Back then, we heard a lot about population growth and that danger. Notice it is not ever a topic of discussion by anybody now.

The population is aging.

Guys like me paid in pennies into the system over our lifetime but reap not dollars, but tens of dollars for each dollar we ever paid in. This is the dirty secret democrats won't explain to you.

I get a fortune out of SS in comparison to what I ever paid in. Most assume that the present SS and Medicare taxes were always this high. They were much lower prior to 1980 era.

Some of you who are young must think this over and do some math. You have no guarantee that our FAT returns will be the same for you. You paid in so much more that if the system goes belly up, you may get the shaft. Politicans lie to you.

Remember that tenet.

They lie.

If you believe them, woe is to you.

[aboutime]

BTW, remember the Federal budgets in the 1990s that Democrats take pride in having "balanced"? (Actually they didn't balance, but several came close, increasing the National Debt by relatively small amounts each year)

Guess why they did so well: Republicans passed legislation cutting the Capital Gains Tax rate. And after vetoing it three times, with an election coming, Clinton finally caved and signed it.

And for the next several years, so much more buying, selling etc. took place that huge amounts of Capital Gains tax revenue flowed into the government treasury, even at the lower rates. Revenue became so high that it nearly caught up with spending... and the vast majority of that revenue came from Capital Gains taxes.

Fast forward to Jan. 1, 2013. What will this Democrat tax hike do? It will RAISE the Capital Gains tax rate.

Bye-bye increased buying and selling. Bye-bye increased business. Bye-bye to the formerly-high revenues from capital gains... and with it, any chance of bringing the budget closer to balance and reducing the deficit.



Little Acorn. You are correct. Democrats, and Clinton supporters always brag about having a SURPLUS, and Balancing the budget when Clinton left office. But they always seem to forget. The Democrats in Congress took that Surplus away, then blamed Bush for taking it.

Has anyone noticed how Obama, and the Dems keep blaming Republicans for NEVER passing a Budget in three years???

No. They can't even be honest about that, and tell the American people how THEY...the Democrats, wouldn't pass or vote on any OBAMA budget he submitted. But they easily lie...Just like Obama does.