Our Latest Fiscal Cliff Coverage
Dec 4th 2012 1:55PM
Updated Jan 2nd 2013 10:24AM
Our goal for this page is simple. With so much confusing fiscal cliff coverage out there, we want to cut through the daily noise and give you only the information and analysis you need as an investor.
Whether it's this fiscal cliff or the next media-fueled "crisis," our aim at The Motley Fool is always to lend perspective and help you invest. Better.
Here is our latest fiscal cliff coverage, updated as we have more insights:
The fiscal cliff is averted for now ... here are the details.
Some rare possible winners in a fiscal cliff scenario.
Starbucks and other companies give their two cents.
As the title says, the energy view.
A sector-specific look at health care.
The most recent public negotiating.
A pretty infographic detailing how we got here.
A look at the micro rather than the macro at five troubled companies.
Here's a high-level run-down of what you need to know about the most obviously affected industry.
The Fed chief weighs in with his thoughts.
A little poetic relief.
Motley Fool exclusive fiscal cliff interviews conducted by Morgan Housel.
There wouldn't be a fiscal cliff without the debt ceiling. So why does the United States have a debt ceiling? And how did it pass into law? To understand how we got here, it helps to know where we've come from.
Here are five companies that should be fine for decades to come fiscal cliff or no fiscal cliff.
How much could increased dividend taxation hurt your investments? Here is some quantitative perspective.
Do you like playing armchair budget quarterback? Here's what a year's worth of spending and taxing looks like, line by line. Have at it!
File this under both "amuse" and "is this what it's come down to?" A kinda silly but technically legal trump card for the president: mint a couple trillion-dollar platinum coins.
The article below this one talks about the effect of the fiscal cliff on individuals. Here's a look at how it could affect businesses.
Complete with spiffy graphics from the Tax Policy Center, this article gives you an idea of the actual amount of extra taxes you could pay if the fiscal cliff isn't resolved.
The questions answered here include the basic "What is the fiscal cliff?" and the not-so-basic "So if Congress and the White House act in time, we can avert any negative impact on the economy altogether?"
Recently, Goldman Sachs' CEO Lloyd Blankfein suggested that a failure to resolve the upcoming fiscal cliff could threaten the dollar's status as the leading global reserve currency.
Come on, you know you want to read what the Oracle of Omaha has to say!
In anticipation of potential dividend rate hikes, some companies are doling out juicy special dividends.
Here's a set of graphs and charts from the nonpartisan Congressional Budget Office showing what would happen given either no compromise or what it calls an "alternative fiscal scenario."
As Dan puts it:
The fiscal cliff is an incredibly important issue for investors, but it's not the only one. By staying aware of the next big issue folks are going to look at, you'll be ahead of the game when the fiscal cliff gets resolved -- one way or another.
A reminder that globally it's not just the U.S. that's dealing with tricky economic decisions.
One consequence of a fiscal cliff scenario is that dividend tax rates would go up. But would companies start paying significantly less dividends? Not necessarily. And would the economy be drastically hurt? Again, not necessarily.
A primer on the fiscal cliff that includes this great investing advice:
What should investors be doing in the meantime? Probably nothing. If you're contemplating making big changes to your portfolio ahead of the fiscal cliff, stop. There's a good chance you're driven more by emotion than reason. If you were happy with your investment strategy three months ago, you should be happy with it three months from now. Smart investing is about long-term businesses, not short-term politics.
Includes a bulleted list of what happens if we go off the fiscal cliff:
- The capital-gains tax rate increases from 15% to 20%, while the 15% dividend tax rate increases to the income tax rate.
- The Department of Defense reduces its budget by 10%.
- Discretionary programs, including education, law enforcement, low-income energy subsidies, roads, and homeland security, will see an 8% cut in budgets.
- Unemployment benefits will revert back to a 26-week limit from the 99-week limit.
- The child tax deduction of $1,000 is reduced to $500.
- A $2,500 tax credit for school expenditures per year for four years falls back to a $1,800 credit per year for two years.
- The payroll tax holiday that saves 2% on Social Security taxes on the first $110,000 in wages will end.
- The estate tax changes from a $5 million exemption and a 35% tax rate to a $1 million exemption and a 55% tax rate.
- Medicare provider payments drop by 2%.
An unintended consequence of higher taxes on big corporations.
The article Our Latest Fiscal Cliff Coverage originally appeared on Fool.com.
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