There has been some talk about the “fiscal cliff” and “taxmageddon” recently. Perhaps not as much as there should be, but more will arise as the year wears on. Most of the discussion focuses on the “Bush era tax cuts,” the revisions in the tax code from the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA) and the Jobs and Growth Tax Relief Reconciliation Act of 2003 (JGTRRA), provisions of which were extended in 2010 until December 31, 2012.Many analysts conclude that Congress will re-authorize the tax cut provisions for at least another year since there has been no action for real tax reform. More and more evidence suggests to me there will be no reauthorization. Even in 2010, Congress was hard pressed to extend the provisions in question. Indeed, it only did so with the imposition of heavy spending cuts on both military and social sectors of the government.But all of this is another topic–a bigger topic. There are two changes that will happen on January 1, 2013 that are as certain as anything in this life. One is the end of the payroll tax holiday, and the other is the start of the 3.8% Medicare tax on investment income (capital gains).Your social security is paid for by a tax of 12.4% on gross income up to a certain limit.One half (6.2%) is paid by the employer, and half by the employee. In an attempt to stimulate the economy, the employee portion was reduced to 4.2% for calendar years 2011 and 2012. In 2013 everyone will again pay 6.2% of their income, up to $113,000. True, the average increase in tax is only about $10 per weekly check, but that totals over $500 per year.There is no effort by either party or either candidate to stop this from happening. After all, Social Security payments are financed by these taxes, and reducing the tax did not reduce the payments, so the government has had to borrow the money to pay Social Security benefits. “Grin and bear it,” is probably the only advice anyone can give.Now the second tax increase. You probably have heard about the $700 billion that was taken from Medicare to fund the PPACA more commonly called “Obamacare.” Well, this new tax on investment is intended to restore that lost money to the Medicare coffers.It imposes a 3.8% tax to capital gains deriving from the sale of assets such as stocks, bonds, real estate and other investments. It would probably not affect your personal home sale because profits from your residence are not taxed on gains of up to $250,000 ($500,000 per couple). I have heard it called a “sales tax” on your brokerage account. Not far from wrong. Your tax or investment advisor may be able to suggest ways to minimize this, so don’t wait long to talk about it.