After falling off the cliff for one day, the House and Senate took action to avert the full force of some $600 billion in spending cuts and tax hikes that were scheduled to take effect throughout 2013, preventing a fiscal shock that some economists thought would be enough to put the U.S. economy back into a recession. The fiscal cliff deal helped to prevent much of the immediate economic impact of the scheduled tax and spending changes. But it was just one step in a series of negotiations over spending, taxation, and the deficit.
The $16 trillion question (that’s the current U.S. debt and it’s near the ceiling) is will it unsettle the markets? How looming tax hikes and spending cuts could hit the sectors at risk -health care, financials, and defense. As the debt ceiling debate develops, it could test markets once again. Is this just another skirmish ahead of the real battle to come during the debate over raising the debt ceiling?
At the next “Coffee and Conversation” event in RSF, Jeff Losito, vice president for Fidelity Investments Institutional Services, will give an update on income tax rates; limits on exemptions and deductions for higher wage earners; capital gains and dividends and estate and gift tax.
The event will be held on Thursday, Jan. 24, from 8-9 a.m. at the RSF Golf Club (5827 Via De La Cumbre in Rancho Santa Fe).
To attend “Coffee and Conversation,” contact Deana Carter at (858) 756-1566 or email@example.com.