Tax Planning Should Be Active, Not Reactive
We have a huge problem in America - a common problem we all share. We have an absurdly complex tax code. Not only does this complexity lead to significant inefficiencies, but it also leads most Americans to ignore taxes until the year is over. This is further exacerbated by the fact that many financial professionals and tax planners do not insist on looking at taxes from an active point of view. Instead, taxes are addressed reactively. This leads to significant inefficiencies, often a higher tax bill than necessary, and worst of all, many Americans sorely miss the tax planning strategies that could benefit them over the long term.
Today we discuss a number of considerations to help you better understand the opportunities that may exist for you, why these opportunities may offer a great benefit to you, and we also clear up some common misconceptions.
Planning for the Hidden Tax Changes Not Being Discussed (part 1)
Income taxation always gets the public's attention. Corporate taxes also serve as good fodder for the masses. But the tax changes that impact the most people often never make it into the public discourse. Be it due to the tax code's incredible complexity, or other, the changes that we should be planning for do not garner the same public attention or outcry. For this reason, they are often the most likely changes to be passed, and they are done so quietly while everyone's attention is directed elsewhere. Today we are going to change that by highlighting what the Government sees as a golden egg-laying goose, and they are eager to tax that goose. While you are being told the only people who may see a tax change are those making more than $400K, the reality is far more sobering.