Monday, March 23, 2009

You Want to Tax What? Government Gets Desperate

On March 16, I published a blog that addressed ways you can be better prepared for the upcoming tax increases []. In that blog, I made the point that it's only a matter of time before we see tax increases to fund the economic stimulus package, and also as a reaction to the downturn in the economy.

Well, ABC News recently published an article on line that identified some creative ways government is trying to raise cash flow []. The title of their online article is "You Want to Tax What? Government Gets Desperate".

Admittedly, this article describes what I call "fringe taxes": levies that hit only a part of the population. Mostly "sin" taxes. It's an interesting article. But it's just the beginning, I think. The reality is these taxes and fees can't raise enough money to be of great significance. But, they do get the population used to more expense, I believe.

Look--the government is likely to be first at the trough to eat. Their share comes off the top, what ever size they determine that share needs to be. Soon, I think, we will see proposals for broader taxes and reductions in exemptions to make the current taxes apply to more people.

Fore-warned is fore-armed. Sheltering your estate from a higher "death tax" through insurance, creating tax deferred wealth through annuities, sheltering cash in cash-value policies are just three very legal and common ways to keep more of what you have worked so hard to accumulate. It's the economically responsible thing to do.

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