2013 Tax Predictions (per the Wall Street Journal)

Laura Saunders, writing for the Wall Street Journal, recently published the article "What Will Tax Rates Look Like in 2013?" From the article:

What will be the top rate on income for 2013?

Almost all the experts expect the top income tax rate will remain 35%, perhaps as a result of a one-year extension of current rates, although a few think it could be as high as 40%.

What will be the top rate on long-term capital gains for 2013?

Almost all expect the top capital gains rate will hold at 15%, with two guessing 20%. (This excludes the 3.8% tax on investment income taking effect for some in 2013.)

What will be the 2013 estate-tax exemption and the top estate- and gift-tax rate?

All believe the exemption will remain $5 million; most believe the rate will remain 35%, with a very few guessing 40% or higher. "The estate-tax rate is more likely to change than the exemption," says Clint Stretch, a principal with Deloitte Tax in Washington.

When will we know what the 2013 tax rates will be?

Not soon. Nearly all expect the rates won't be set until December 2012 at the earliest, and possibly well into 2013—although one lone soul thinks Congress could pass a one-year extension of the 2012 rates before the election.

"Whatever the date, it will be late enough to cause chaos for payroll preparers and the IRS," says Chris Bergin, publisher of the journal Tax Notes.

Will there be fundamental tax reform in 2012?

Not a chance, say the experts. On this point, they were unanimous.