Apollo Wealth Management, Ltd.

According to IRS data for 2008 nine of the ten most heavily taxed neighborhoods in the U.S. were in and around NYC.  Neighborhoods ranging from Manhattan to Fairfield County, Connecticut accounted for 0.2% of all federal income tax filers.  These folks paid Uncle Sam $16.5 billion representing 1.6% of all individual income taxes collected by the federal government.  Looking at this in another way the "1%" paid eight times their representative share of the filing population.  Eight times!

Where's the outrage?  Where's the call for greater tax equality?  How long before Stephen Schwarzman, David Koch, John Thain (all residents of the 10021 zip code), Jeff Immelt (10022), Lloyd Blankfein (10023), Vikram Pandit (10024) and Jeff Blau (10028) move into a tent city on the outskirts of Zuccotti Park?  Clearly the only logical solution to rectify such egregious income tax inequality is to occupy the "Occupy Movement."

It's that time of year again.  No, not the changing of the leaves (although that's well underway) but year-end distributions.  Mutual fund giant Vanguard kicks things off with a preliminary estimate and calendar of events.

Millionaire's Surcharge

Although Obama's jobs bill was killed in Congress some components may resurface in future proposed legislation.  Initial proposals included a series of tax increases on individuals making more than $200,000 and families making more than $250,000.  Among them was a 28% cap on the tax exemption for muni bond purchases.  Senate Democrats replaced these tax increases with a 5.6% surcharge on adjusted AGI (AGI less a deduction for investment interest) above $1,000,000.

Without Congressional Action capital gains currently taxed at a maximum 15% will be assessed a 20% rate beginning in 2013.  Dividends currently taxed at the same 15% maximum will rise to an individual's ordinary rate.  A House bill and a Senate bill introduced by Republicans attempt to permanently fix the rate on both dividends and capital gains at 15%.

Obamacare Tax Repeal

A 3.8% Medicare tax assessed against investment income begins in 2013 to offset the costs of Obamacare.  Senator John Cornyn from Texas introduced a bill to repeal the assessment.

Paying Mortgages from Retirement Accounts

Proposed legislation in both the House and Senate would allow penalty-free withdrawals from tax-exempt retirement plans and pensions.