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Archive for June 2nd, 2017

Don’t worry: The rich will save the federal government. No, really. Right?

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Imagine you’re filthy rich. A one-percenter. You’ve got tons of investments and other sources of interest-based income. Yes, I know, you’ve got that vacation house in Aspen and that skiing chalet in Zermatt. But those, and the house in the Hamptons, are getting a little pricey for upkeep and paying the household staff a livable wage.

Image result for tax images creative commonsYou’re tempted to sell off some of those investments to bring in some cash because the market’s pretty good right now. Besides, your Bentley is now three years old. Time to replace it with a new, $310,000 Mulsanne.

But your  team of crack accountants tells you to hold off selling anything: “Remember, President Donald says he’s gonna push serious tax reform through Congress real soon.” In fact, the president’s treasury secretary said the new tax plan would be “the biggest tax cut and the largest tax reform in the history of this country.”

You, of course, salivate, thinking of all the money you’ll save if your top income-tax rate falls from 39.6 percent to 35 percent, to say nothing of the cut to 15 percent applied to all the businesses you own. (You know, of course, that team of crack accountants has for years kept you from paying anywhere near the top rate.)

So you indeed hold off selling. You tell all your one-percenter and one-tenth-of-one-percenter pals to hold off, too. So they do.

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Written by Dr. Denny Wilkins

June 2, 2017 at 8:30 am

Posted in Uncategorized