In fewer than six months, Americans will face their biggest tax hikes in history

Posted on August 15, 2010 by Bill Faiferlick

As of Jan. 1, 2011, no matter what your tax bracket, you can expect a hike. The lowest, 10% bracket will rise to 15%. On the high end 35% will rise to 39.6%. And everything in between…

The 25% bracket will rise to 28%.

The 28% bracket will rise to 31%.

The 33% bracket will rise to 36%.

If you’re married, expect to pay more.

That’s right — the “marriage penalty” is back.

Kids? The child tax credit is slashed from $1,000 to $500 per child. (Not that you could raise a kid on $1,000 a year anyway.)

I know that you’re not thinking about dying soon. But you may want to adjust your assets accordingly in the next six months…

… Because the Death Tax returns in 2011!

That’s right — if you die this year, no death tax. But 6 months from now, expect a whopping 55% (on estates over $1 million).

There has simply never been a more pressing time than right now to start planning for the future (the future that’s less than 6 months away!).

Where the Millionaires Are…

Not surprisingly, the U.S. is slipping wealth-wise. (Gee, Uncle Sam, what did you expect?)

A new listing shows that global private wealth made a comeback in 2009, increasing by 11.5% to US$111.5 trillion. This comes from The Boston Consulting Group’s Global Wealth 2010 Report.

The largest gain occurred in Asia-Pacific where wealth rose by 22%, or $3.1 trillion, nearly double the global rate.

Latin American household asset growth rose by 16% to $3.4 billion, and Europe, despite its debt problems, was the wealthiest region with more than $37 trillion in private assets under management, an increase of 8.8% from 2008.

Where the World’s Millionaires Are 

1)      Singapore: Population: 4.7 million; Percentage: 11.4%

2)      Hong Kong: Population: 7.1 million; Percentage: 8.8%

3)      Switzerland: Population: 7.6 million; Percentage: 8.4%

4)      Kuwait: Population: 2.8 million; Percentage: 8.2%

5)      Qatar: Population: 841,000; Percentage: 7.4%

6)      United Arab Emirates: Pop. 4.9 million; Percentage: 6.2%

7)      United States: Population: 310.2 million; Percentage: 4.1%

8)      Belgium: Population: 10.4 million; Percentage: 3.5%

9)      Israel: Population: 7.4 million; Percentage: 3.3%

10)   Taiwan: Population: 23 million; Percentage: 3%

The US only attained seven out of ten in the rankings which helps to illustrate how far we’ve fallen in the last two decades. That said you have an option, continue to watch your incomes dwindle or take an active approach and leverage the tax system by taking full advantage of deductions that will help you grow your net worth instead of shrinking it.

Regardless of income levels or net worth making smart choices has always been the hallmark of attaining and retaining wealth. Wealthy families have managed their assets in this manner for generations. Yet too many business owners and professionals fail to utilize one of the simplest yet most effective opportunities they have at their disposal.

IF YOU HAVE AVAILABLE TO YOU AN OPPORTUINITY TO SLASH YOUR TAX LIABILITIES BY ½ TO ZERO WHAT’S THERE TO THINK ABOUT?

For some this may require you ignore your CPA’s “best advice” because after twenty-three years helping businesses and professionals secure, create, and increase their wealth, many recommendations from CPAs have been incorrect. If you find this a little shocking I wrote a book and dedicated an entire chapter to dispel the myth of the all knowing CPA.

Your unique facts and circumstances will determine the type of solutions that can be implemented to help you succeed. That’s how I measure my success, pride and personal satisfaction helping others and seeing the results of those efforts.