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Date: June 30, 2007
Subject: Tax Tip of the Week

This is...
G&G Associates
Tax & Financial Consulting Services
e-Newsletter

Americas Credit Rating

Under Current law, the credit rating of the US Government will fall from AAA to speculative ("junk") during the 10 years from 2017 to 2027 due to the surging cost of Social Security and Medicare as baby boomers retire, according to projections by Standards & Poors.

Tax Impact:
Congress will need to prevent this by enacting major tax hikes then, even if it cuts spending too. And 2017 is only 10 years away.

Long-Term Planning:
Consider it likely that the estate tax will survive and personal tax rates will go up on IRA and retirement plan payouts as well as on deferred compensation. But Roth IRAs and Roth 401(k)s may avoid these taxes since funds contributed to them are taxed today and future distibutions are tax free.

So, are you still only working that job paying 30-47% of your check in taxes now when you could be keeping it. Or, do you have a business and your not taking advantage of the tax savings afforded to you. I hope you make a choice in the right direction to learn how to keep Uncle Sam's hands out of your pockets now while you can because things do not look that great in the future.

Remember..."learning is like soap, it only works if applied."

Thanks

Gary Gray,RFC
G&G Associates
520-360-8120 cell
866-361-3872 fax
www.gngassociates.net


 

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