With the recent fiscal cliff deal and many taxes from The Patient Protection and Affordable Care Act coming into play this year, American taxpayers and businesses will be slammed with an estimated $264 billion in new taxes this year alone – making 2013 memorable for delivering one of the largest one-year tax increases in American history.
These tax changes will also have a financial effect on U.S. citizens and permanent residents on ongoing international assignments as well as U.S. domestic transferees moving under a corporate relocation program. The debt ceiling discussions are ongoing in Congress…the House on Wednesday approved a short-term debt ceiling fix which will probably quickly pass in the Senate. But there is a distinct possibility, that no matter what the outcome, the U.S. credit rating could take another hit. Fitch Ratings on Tuesday reiterated its warning regarding the country's AAA sovereign credit rating asserting that just raising the debt limit is not the golden bullet but that we need a credible medium-term deficit reduction plan that can restore confidence in public finances.
To learn more on the consequences for relocation spend, click on the link below to read our short commentary titled US Fiscal Cliff Narrowly Avoided – Grand Canyon May Be Ahead.
What changes have you implemented to cover the additional costs coming this year… are you considering policy changes, RIF or downsizing?