As summer draws to a close and those jockeying for the White House stump harder for your support, you might keep this in mind:
According to the U.S. Debt Clock, federal tax revenues are now $3.2 trillion. And they’ll jump to between $3.8 and $4.1 trillion in four years. So where do you think our elected officials will get the additional bucks? Will it come from those who have no money, or from people who are already paying taxes?
The clock also shows that over 76 million people (24 percent of our population) are on Medicaid, which along with Medicare is the largest budget item. And 45 million receive food stamps. Do you think those numbers will drop?
I doubt it.
That tells me that Washington will continue to be under pressure to support more people. And every dollar that politicians spend, it’s a dollar they took from taxpayers.
To sum it up, expect taxes to rise … no matter who ends up on Pennsylvania Avenue.
Your best course of action is to carefully consider the tax implications of your financial decisions. That includes when to begin Social Security benefits; when and how much to withdraw from tax-deferred accounts, such as your IRA and 401(k); and how to pass assets to your survivors.