The tax changes scheduled to take effect on January 1, 2013 alone are wide-ranging:
· The 2001 and 2003 tax cuts "Bush tax cuts" are set to expire, which would increase marginal income tax rates, increase the tax on long-term capital gains and qualified dividends, decrease the standard deduction for married couples, and decrease the child tax credit.
· The estate tax will increase, from 35% on anything above $5.12 million to 55% on anything about $1 million.
· The alternative minimum tax (AMT) patch is set to expire, resulting in tax increases for taxpayers earning between $50,000 and $200,000.
· The employee portion of the payroll tax will increase from 4.2% to 6.2%.
· Several dozen tax deductions will expire, including those for tuition expenses, alternative fuels, and mortgage insurance premiums.