A Massive Tax Plan Is Coming
This week the Federal Reserve raised interest rates for the first time since the financial crisis of 2008. This move has put the U.S. on course toward a new fiscal cliff.
Based on the report issued by the Committee for a Responsible Federal Budget, interest on the debt of the Federal Government will rise 238 percent by 2025.
This is an increase of 532 billion dollars a year from what we are paying right now.
In their forecast, the see the 10-year treasury yield projected to rise from 2.3 to 4.3 percent by the year 2025. Interest costs will represent 1 out of every 8 dollars the government spends.
This is money that does nothing for the growth of our economy.
American Taxpayers Will Get…The Bill
The money to pay for this debt must come from somewhere, and as ”we the people” know, the Government will enforce new taxes, higher taxes, and “means based” testing on Americans.
Strategic financial planning must take into consideration that tax-deferral of IRA and 401k accounts could quite likely result in paying higher taxes in the future on those dollars.
Although not likely, but if hyperinflation should appear in the longer term, one should expect massive losses in the financial markets, and very aggressive tax and confiscation plans by the Federal Government.
No matter what plan the Government comes up with, the open checkbook spending must stop. The tax system must be reformed. Americans need to look closely at how vulnerable their financial assets are to Government manipulation and control. With nearly 90 percent of Americans savings held in Government sponsored IRA and 401k plans, this presents a huge target of future revenue for Congress.