With the 2012 presidential election results of Barack Obama (301) beating Mitt Romney (203) published on November 6th, 2012, many questions came to mind on how people will be affected. Whether it be how the stock market will play for the future after a DOW Jones drop of 300 points the day after the election, Obamacare, jobs, economy, taxes, etc, the bottom line is that next four years are crucial for Obama. From historical evidence with the past several reelections, presidents such as Reagan, Clinton, and Bush have had a tough second term. What I want to bring up here is how 2013 will bring about some changes that may affect you in regards to the tax system and your financial planning.Estate TaxesFederal estate tax is a tax that is imposed on an individual that is transferred assets from another individual after death. The total tax for this is calculated based on adding up the total assets of fair market value on the date of his/her death while applying estate tax credits and deductions. Note: There is a federal level for estate taxes and also a state level if applicable (Connecticut, Delaware, District of Columbia, Illinois, Kansas, Maine, Maryland, Massachusetts, Minnesota, New Jersey, New York, North Carolina, Ohio, Oklahoma, Oregon, Rhode Island, Tennessee, Vermont, Washington, Hawaii*). Hawaii is dependent on the federal rate. The federal estate tax for the current rate will end in 2012 and will revert back to 2000/2001 levels if no congressional actions are made.The estate tax exemption is the money you can receive tax free. The top estate tax rate refers to your tax bracket and how much you will pay on anything over the estate tax exemption.Capital Gains TaxCapital gains tax is the tax that you pay on an investment such as stocks, real estate, etc. There are two types of capital gains tax: short term and long term. Short term refers to holding onto an investment for less than one year. Long term refers to holding onto an investment for at least 1 year long. Short term capitals gains are taxed at the ordinary income tax level whereas long term capital gains are currently capped at 15%. The cap for long term capital gains tax is up to 15% till the end of 2012 where it will then be raised in 2013. The long term capital gains tax could possibly be raised to 20% or even 25%+ depending on the congressional actions.Personal Income TaxPersonal income tax will most likely be raised beginning 2013 where the current cap for federal income tax is 35%. The new cap could be pushed up to 39.6% as stated by Obama. Now remember, not many people are in this 35% bracket. So, this will have little affect on the middle class but an affect on the rich. The overall tiered bracket may possibly change but we will have to see.Social Security TaxSocial Security tax is one that is automatically deducted from your paycheck every time for a retirement payout starting at age 65 (or earlier with a penalty). The normal rate for social security tax is 6.2% where for 2011 and 2012, it was lowered by 2% to 4.2%. Starting 2013, this will revert back to its original rate of 6.2% unless acted on by Congress. If this reverts back to its old rate, it will affect EVERYONE who receives a paycheck by another 2%.Proposition 30 (California)Being that I live in California, I have to cover the passed proposition 30, which is to increase taxes for education. With the school system being squeezed as tight as possible already, some extra funding will be needed to avoid tuition increases. The tax that will affect everyone here is the sales tax that will be increased under the Brown Tax Hike. This proposition also called for an increase in state income tax (tiered) for those exceeding salaries of $250,000, $300,000, $500,000, and $1,000,000 at 10.3%, 11.3%, 12.3% and 13.3%, respectively. However, this won’t affect a majority of people but it does for those who make $250,000+.