On March 16, I published a blog that addressed ways you can be better prepared for the upcoming tax increases [http://thenewageofeconomicresponsibility.blogspot.com/2009/03/upcoming-tax-increases.html]. 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 [http://abcnews.go.com/Business/Economy/story?id=7135684&page=1]. 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.