Tax & Financial Tips Archive
[Back to Archive]

 

Date: July 1, 2010
Subject: American States on Verge of Default

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

American States on Verge of Default

Imhotep (Wisdom to You) G&G Readers,

“Where were you on July 1, 2010?”

Years from now, someone may ask you that question. And the reason he’ll want to know is…
July 1 marks the tipping point of the Great State Meltdown.

What’s going on?

Forty-eight states have borrowed too much and spent too much– just like the federal government. But the key difference is: they can’t print their own money to pay the bills. And to make matters worse… BY LAW… they must balance their budgets by July 1, 2010.

Sounds simple, right?

But there are two little problems in the way: massive budget shortfalls and plunging tax revenue.

It’s critical that you understand this escalating debt crisis. What it means for your hometown… and your portfolio.

In the coming months, three outcomes are virtually certain:
1.) States will make sharp cuts to social services.
2.) Taxes in the worst-off states will head higher.
3.) At some point the feds will be forced to step in with a bailout.

It all adds up to what the National Governors Association (NGA) calls…

‘A Lost Decade for States'

-----------------------------------
For more details on how to stay Protect Yourself and your portfolio…

Become a GGIS subscriber now and you’ll be sure that we make sure you stay on top of your Tax and Financial Future to make sure your BUSINESS … AT HOME is protected. Remember…most people look after their bosses business, but fail to look after their own Business At home.

Take advantage of our 2010 discount offer if you are not yet a member of the GGIS paid newsletter service and you’ll be on your way to knowing how to protect your portfolio...at least what’s left of it. I’ll keep you informed on the “REAL DEAL” in our economy so you can protect your wealth. So....Sign up today!!!

To become a member of the G&G Investment Society newsletter subscription, send an e-mail to GGIS@gngassoc.com and/or visit our website at www.gngassociates.net and click on the “Products & Services” link and we’ll get you signed up right away.

DON'T WAIT ANOTHER DAY!

- 1 year subscription - $49
- 2 year subscription - $84
- Lifetime subscription - $199
-----------------------------------

Let me explain…according to a recent report from the NGA…

“The states are facing a protracted budget crisis, like none seen in the last 30 years and perhaps not seen since the Great Depression. This raises the vision of a ‘lost decade’ for states.”

The numbers are simply astounding…

“From 1979 through 2007, state tax revenues grew at an average rate of 6.5% each quarter from the year before, with only a single quarter of negative growth. But recently, this trend has reversed.

Starting in the fourth quarter of 2008 through 2009, state tax revenues declined an average of 10.7% each quarter, with no indication…that the bottom has been reached.”
The average American has no clue this is going on.

For years, voters have gone to the ballot box and checked “yes, yes, yes” next to every bond measure that could possibly “help” their hometown. Rising property and income taxes made it all possible.

But nothing goes up forever, does it? Property tax receipts have plummeted. So have income tax revenues – you can’t tax someone who’s out of a job.

And according to ShadowStats.com, 22% of adult Americans are out of work.

Now the bill is coming due and those same voters are about to say, “No, no, no… what have we done?”

Here are a few solutions put forward by the National Governors Association:
• Selling off state assets (surplus equipment and state office buildings).
• Eliminating or permanently altering Medicaid and retiree benefits.
• Increasing the number of people who leave prison and lowering the number who re-offend and return.
• Replacing schoolteachers with “online courses” for middle and high school students.

And that’s just for starters…

Scary? Yes…
End of the world? No!

But…brace yourself folks and take action to protect your family and your financial portfolio.

If you need a personal one-on-one consultation, please feel free to contact us to setup an appointment.

If you missed a past G&G article, click on the link below to visit G&G Associates archive:
http://ezinedirector.com/admin/publisher/archive/public/?fuseaction=a&e=7944575E0843077440

Until the next time!

Asante Sana (Thanks)

Gary Gray
Tax & Financial Consultant, RFC
G&G Associates
757-251-0174 office
866-361-3872 toll free fax
www.gngassociates.net

“Words cannot give wisdom if they stray from the truth."
Ancient Kemetic Proverb

P.S. If you're not a GGIS Paid Subscriber reader yet, why not? Sign up today!

P.S.#2 If you or your group are looking to Travel and want steep discounted travel, visit www.gngassociates.net, click on the “G&G Travel” link and let your travel planning begin. Let us know where you or your group want to go and we’ll do our best to find you the best deal your money can buy.

 

Tax & Financial Tips Archive
[Back to Archive]