I don't know if this is a myth or not. But I do know that piling on the Federal debt is an economy killer if done capriciously rather than as a recovery tool. This time it's utterly capricious.
- In anticipation of the trillion dollar manna from the Treasury that this bill will create, financial companies commit to lavish bonuses and raises for their employees, Hartford, Travelers, Money Concepts, Kingstone to name a few. Will they share that largess in the form of premium decreases, higher interest crediting rates or less costly riders? Will they warn their employees about the future higher taxes that will be necessary to keep the Treasury funded? Does anyone recognize the key role the federal government plays in stimulating and stabilizing the economy? Does anyone realize that these raises and bonuses are less than a drop in the ocean? What do you think?
- An expanded estate tax exemption ($22.4 mil. for a couple) will decrease the need for estate tax planning for most Americans. So they'll be canceling, cashing in, or even selling expensive life insurance policies that were designed to pay the tax.
I mean what the heck. If you're an only child, how could you possibly survive with less than $22,400,000? It's wonderful that an American, regardless of merit, can acquire that kind of power by winning the ovarian lottery. Isn't that why our forebears left Europe, with all its feckless kings, queens, dukes, duchesses, lords and ladies?
- In a calculated stab at Blue states, the allowed deduction for state, local & property taxes will be capped at $10,000. This will increase the outflow of federal taxes from states that are already donor states (pay more in taxes than they receive in benefits).
Your Constructive Comments are Welcome!