So not only will $30 million taxpayers face higher taxes for 2012, up to 100 million taxpayers could see a significant delay to their tax refunds. That would be sure to have a dire effect on the economy during the first quarter.
Euphoria and Volatility
Bank of America's shares have now returned 104% year-to-date, following a 58% decline during 2011. Mounting evidence of a sustained recovery in U.S. housing prices, along with the overall economic recovery, have propelled the shares, although they were still down 15% from the end of 2010.
The shares have been quite volatile this year, quickly rising to a closing price of $9.81 on March 20, then sliding to a close at $6.83 on May 21, before continuing a rocky climb to Thursday's closing high of $11.52, so Bank of America could be especially susceptible to the Fiscal Cliff and the possible AMT-driven delays of tax refunds next year.
Bank of America's shares were till discounted at Friday's close, trading for 0.8 times their reported Sept. 30 tangible book value of $13.48, however, the shares appeared relatively expensive in the current environment for large-cap bank stocks, at 11.8 times the consensus 2013 EPS estimate of 96 cents, among analysts polled by Thomson Reuters. The consensus 2014 EPS estimate is $1.25.