Happy New Year!

“Change” has been the watch word in government for the last few years. We’ve been promised a monumental restructuring in the way things get done in Washington.

And change there has been. Whether you agree or not with the direction of that change, you’d be hard pressed to argue that at least there has been an awful lot of it.

There’s been new legislation for universal health care, abolishment of “don’t ask - don’t tell” and trillion dollar budget deficits to name a few of the alterations that have occurred.

However, when I think of all the recent change that’s taken place, my thoughts don’t immediately run to the catchy “change” slogans being bandied about in Congress. When surveying the new landscape, my sentiments tend to align more closely to Washington Irving’s read on change when, back in the 19th century, he was heard to say:

“There is a certain relief in change, even though it be from bad to worse! … it is often a comfort to shift one’s position and be bruised in a new place.”

Unfortunately (or fortunately from a tax perspective) our friends in Washington have chosen to bruise us in pretty much the same spots as the last few years. With a few exceptions, rates and deductions from 2009 have carried over to 2010 and 2011. The bruising facts are below.

I hope this was of value. As always I welcome your questions and feedback.

Jim

P.S. One thing that did not change: I was selected again in 2011 to be included as one of Boston Magazine’s “Five Star Wealth Managers” – it will be highlighted in the February edition. Thanks to all who voted for me. Your continued trust and confidence is greatly appreciated.