Skip to main content

Fiscal Cliff Resolution Summary

We hope that you had a safe and wonderful holiday season and wish you and your family a HAPPY NEW YEAR in 2013!!!

We have been closely following the changes our government is advocating to avert the so called "fiscal cliff" and how it will affect our client's financial plans in the future.  While there are many details still to be hammered out and communicated, here is a summary of what we know now, based on the agreement currently on the table:

Congress skidded to a halt with the front tires hanging over the fiscal cliff, with the House last night joining the Senate in passing Taxpayer Relief Act.  Initially, the stock markets have shown gains, however, we believe that this excitement will evaporate, because the buildup does not include raising the debt ceiling or longer-term budget cuts.

Republicans and Democrats are hardening their positions ahead of the upcoming battle over the debt ceiling, which the government hit on Monday but which the Taxpayer Relief Act didn't address. The sides also face a fight over $110B of automatic spending cuts that were delayed for two months. To buy it a couple of months regarding the ceiling, the Treasury is taking special measures.

The fiscal-cliff deal increases taxes on household incomes of over $450K to 39.6%, as well as taxes on capital gains, dividends and inheritances. The hope is to raise $600 billion in new revenue over 10 years. The payroll tax cut is allowed to lapse, so the employee portion of the Social Security tax will return to 6.2% from 4.2%. All in all, overall taxes will increase for over 75% of households in 2013, says the Tax Policy Center.

The Taxpayer Relief Act will add almost $4 trillion to the deficit over the next ten years, the Congressional Budget Office has calculated, citing the codification of the Bush-era tax cuts for most Americans. Meanwhile, the deal will probably ensure that the U.S. avoids recession but it will also help cut economic growth, economists have forecast.

As expected, the Act extends some farm support schemes for a year and averts the "dairy cliff" by ending fears that the price of milk could double - the measures prevent the revival until September of a decades' old subsidy that would have forced the USDA to buy up milk at prices way above what farmers are receiving now.

There will no doubt be much discussion and dissection of the Fiscal Cliff resolution in the media in the coming weeks.  We hope you’ll feel free to call us with any questions you may have about how the plan affects you.

White House Financial & Settlement Consulting helps families live easier and less stressful lives through the proper management of their financial resources.  We do this by acting as our clients’ trusted advisor providing a personal touch customized to the client’s needs!  Please visit our web site at  or contact us directly for more information!

White House Financial & Settlement Consulting, LLC


114 South Main Street· Suite 300 · Chelsea, Michigan 48118 · Phone: (734) 433-1670 · Fax: (734) 433-1671

Securities offered through Sigma Financial Corporation. Member FINRA/SIPC

Sigma Planning Corporation, A Registered Investment Advisor

CAUTION: electronic mail sent through the Internet is not secure and could be intercepted by a third party. For your protection, avoid sending identifying information, such as account, Social Security, or card numbers to us or others. Further, do not send time-sensitive, action-oriented messages, such as transaction orders, fund transfer instructions, or check stop payments, as it is our policy not to accept such items electronically. Please be aware that we do not provide tax or legal advice, and that the information set forth herein was obtained from sources which we believe reliable, but we do not guarantee its accuracy. Neither the information nor any opinion expressed constitutes a solicitation by us of the purchase or sale of any securities or commodities.

Popular posts from this blog

Thomas Bond Benefits of Structured Settlement Video

Please watch this excellent video where e xperienced and successful personal injury attorney, Thomas M. Bond from the firm of Kaplan/Bond in Boston tells you why a structured settlement is the best choice for the longterm financial security for you and your family when your lawsuit settles for a large sum. Hear how one man made the wrong choice and tragically lost everything.

Structured Settlements in A Low Interest Rate Environment

We often hear from our plaintiff attorney clients that their clients should not use a structured settlement annuity due to the current low interest rate environment. Their thought is that their clients can do better in other financial instruments such as the stock market. This logic fails to take into the consideration one of the best features of a structured settlement annuity which is its income tax FREE GUARANTEED payments. I am a financial adviser and Certified Financial Planner with over 20 years of experience who can advise clients regarding ALL financial options and not simply limited to Structured Settlement Annuities. I have witnessed MANY high and low interest rate environments and MANY claimants who were going to "get a higher rate of return" outside of a structured settlement annuity who are now OUT OF MONEY! Remember, it doesn't matter what rate of return you are getting if the balance of your investments is ZERO! But don't just take my word for i


You probably know us best for our Plaintiff Focused Structured Settlement Consulting services.  You may not know that we also help plaintiff attorneys and their clients resolve those nasty LIENS that threaten your hard won settlements through our partnership with PROVIDIO! Please click the link below for more information on our lien resolution services: If we can assist you with your lien resolution or structured settlements please call us at (734) 433-1670 or email .