This week, the American Congress passed a massive new Financial Overhaul Bill.
Among other things, this phone book of new regulations purportedly seeks to close loopholes in a system that led to the 2008 economic collapse. However, in my opinion, this bill not only is unnecessary, its additional onerous regulatory "super boards" and red tape will be like adding gasoline to a fire.
You see, the bill has absolutely nothing to do with speeding up the economic recovery.
Instead, it is simply more of what we have come to expect by way of a larger power and revenue grab by the federal government. For instance, Section 342 of the Bill mandates that all 12 federal financial regulatory boards utilize a prescribed ratio for hiring certain ethnic, race and gender employees, and further, that any company those federal boards do business with are similarly mandated those same affirmative action mandates.
Are you kidding me? This is what the Obama administration and Congress thinks is the most important job they have to do?
To add insult to injury, what the government should have done instead of focusing on mandatory discrimination is to renew the tax decreases that have been in effect for the past decade and are scheduled to end Dec. 31, 2010. But it didn’t and so American workers, their families, retirees and small businesses are about to be slammed with huge tax increases in less than six months.
On January 1, 2011, virtually every citizen will be adversely impacted.
For example, instead of paying no tax on assets transferred at death to family members as has been the case, beginning January 1, 2011,
all assets are subject to a “death tax” of as much as 55%! And for the living, the tax increases will be on almost every form of income. On dividends. On capital gains. On earned income.
The ugly, disgusting truth is that the United States of America has racked up an unsustainable debt. It owes so much money to foreign governments that the amount is almost incalculable. To raise money, our government has seized control of the automotive industry, the banking industry, the health care industry and now dictates whether and how private business can pursue oil and gas exploration — both on and off shore — even as drilling leases off the US coast have been signed by the Spanish, Russians, Chinese and Vietnamese.
There are only two schools of thought regarding monetary (money) policy. Either allow the private sector to increase tax revenue through economic growth, or use the government to increase taxes on what enterprise already exists. Unfortunately, the government reigning in Washington now is firmly planted in the latter school of thought. Our government’s reach into the business and purse of America’s citizens and businesses is unprecedented.
Is there any island left that the government isn’t reaching for? Any place where you can still maintain some control? Yes, there is, and it is in one of the most unlikely places: Your own life insurance policy.
Right now, you can use a particular type of life insurance product to set aside literally as much money as you want for tax free growth and then use that account later for tax free income. That’s right, no dividend tax, no income tax, and no capital gains tax. It accumulates in the cash value of your life insurance policy until you want to access it. It really is that simple. And this is one of the very few situations where I recommend virtually everybody take advantage of this financial instrument!
You might be thinking that the government is sure to catch on and take this tax free opportunity away. Maybe. But in every single tax law change in the last 120 years, life insurance was able to “grandfather” its policyholders; meaning that if you already owned a policy, you got to keep the existing tax benefit.
There are a lot of technical issues associated with setting up one of these plans, so be sure to talk with a licensed, knowledgeable professional such as an RFP.
Don’t be fooled by all of the hoopla on the front deck of the Titanic. You can protect your savings from the tax-and-spend plans of our government by moving some of your savings into a life insurance policy. Don't wait until your savings has dwindled, and don't wait until you see your money going out the door to Washington from these new taxes that are coming in 2011.
Take control and do something today to protect yourself!
Click here for a referral to someone I trust and recommend.
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