Gemmer Asset Management Gemmer Asset Management LLCLLC

Summary of 2013 Tax Changes

January 16, 2013

Individual Income Rates

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• Current marginal tax rates are retained> 10%, 15%, 25%, 28%, 33% and 35%

• A new top rate of 39.6% has been created for income over $400,000 for single filers and $450,000 for joint filers

• Taxes on capital gains and qualified dividends increase to 20% for those in the new top tax bracket> 15% rate is retained for taxpayers in the 25%-35%

brackets> Taxpayers in 10% or 15% brackets will still pay no

tax

Other Income Changes

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• Personal exemptions and itemized deductions phase-out is reinstated> Applies to those whose income is above $250,000 for

single filers and $300,000 for joint filers

• AMT exemption is permanently indexed for inflation• New Medicare tax on net investment income

> 3.8% if adjusted gross income exceeds $200,000 for single filers and $250,000 for joint filers

• The payroll tax that funds Social Security and Medicare will increase from 4.2% to 6.2% -> This is a return to the rate that workers paid before a

temporary cut was passed in 2011> This affects all workers

Estate Tax Changes

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• Estate, Gift and generation skipping exemption is retained at $5 million and will be indexed for inflation> $5.25 million in 2013

• The top tax rate increases from 35% to 40%