Bolstered by the testimony of David Walker, Lawrence Kotlikoff and others, I have long maintained that the United States is on an avoidable path to fiscal insolvency. Every year that goes by where Social Security and Medicare aren’t reduced by 1/3 makes the reality of higher taxes down the road all the more inescapable. Many experts put the day of reckoning only about 10 years away. Will your clients be alive 10 years from now? If so, will they look back on 2015 and say, “Why didn’t I take advantage of historically low tax rates? Why didn’t I pay my taxes while they were on sale?”
I’ve always seen Illinois as a microcosm for what’s happening at the federal level. As this article suggests, Illinois has made billions of dollars in promises that it can’t afford to keep and now their day of reckoning is at hand. The solution? Well, it isn’t to reduce the pension costs that they are contractually obligated to pay. It’s to raise taxes.
For your clients who insist that our elected officials lack the political willpower to make these tough decisions, point to legislators in Illinois who are now proposing huge tax increases in order to pay their bills and avoid bankruptcy.
Yes, higher taxes in the future are a mathematical inevitability and the sooner our clients wake up to this reality, the sooner they can protect their savings from the tax freight train that’s bearing down on our country.
To learn more about our mentor program that trains you on how to get your clients off the train tracks, take a look at our FREE online video series.
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