There is one event that a politician is fearful of: not getting elected. When it comes to taxes, they try to stay away from discussions regarding the federal income tax and the social security tax. These are hot buttons for voters. In the last couple of elections, these taxes have not increased because these taxes make headlines. But, every year the government continues to collect record amounts of tax revenues, which are typically spent before collected. How do they continue to collect record amounts of revenue every year? Other than the income tax and social security tax, very quietly, they have increased hundreds of other taxes with very little media coverage. These are called “hidden taxes.” These are the silent killers that are robbing you and impacting your ability to save, which, by the way, is also taxed.

TAXES

Federal Income Tax

Social Security Tax

State Tax

City tax

County Tax

Property Tax

School Tax

Sales Tax

Estate Tax

Gasoline Tax

Water Tax

Sewer Tax

Business Tax

Airport Tax

Telephone Tax

License Tax

Hotel Tax

Cable TV Tax

User Taxes

Unemployment Tax

Cigarette Tax

Corporate Income Tax

Inheritance Tax

Accounts Receive Tax

Inventory Tax

Marriage License Tax

Liquor Tax

Building Permit Tax

Medicare Tax

Fishing License Tax

Real Estate Tax

Food License Tax

Fuel Permit Tax

Hunting License Tax

Road Usage Tax (truckers)

Luxury Tax

Recreational Vehicle Tax

Utility Tax

Septic Permit Tax

Well Permit Tax

Road Toll Booth Tax

Vehicle Sales Tax

Workers’ Compensation Tax

Trailer Registration Tax

Watercraft Registration Tax

Long-Term capital Gains Tax

Short-term Capital Gains Tax

Telephone Federal Excise Tax

Telephone State and Local Tax

Telephone Usage Charge Tax

Telephone Federal Universal Service Fee Tax

Telephone Recurring Charges Tax

Tax on Energy, Gas, Electric, Heating Oil

For the average American, the ability to survive the trauma of taxation is made even more difficult by the uncontrollable government spending and their unsustainable amount of debt. The interest on this debt alone eats up a tremendous amount of the revenue the government collects from us via taxes. The government is going to have to insist on collecting more revenue (higher taxes) to pay this debt and the programs they continue to promote.

Only one division of the government must tell the truth about government debt. The President? No. The Congress? No. The Treasury? No. The GAO? No. There is only one department that must tell the truth: the Bureau of Public Debt. This is where foreign countries go to decide whether to invest in our T-bills and government bonds. The bureau has its own website and lists the debt daily. Remember, in the last 50 years, there has never been a year when this debt went down. This economic trend will have a tremendous impact on future taxes and your money.

TAX-A-RAMA

Taxes are the greatest transfers of your wealth. If you believe that taxes are going to go down in the near future, then I’m truly concerned about you. Recent tax history and the government’s spending habits are leading us in only one direction: higher taxes.

TAX FACTS

In recent years, personal taxes increased 42% faster than personal income
State and local government taxes increased 168% faster than national income
The typical American pays more in taxes that on food, shelter and clothing combined.
Federal taxes increased 2.5 times faster than personal incomes.
5.1 months equates to about 40% (142.5 days) of the year worked by the average citizen to pay for government spending at all levels
The average worker needed to work 1.4 months in 1928 to pay for federal plus state/local government spending, compared to working five months today. That’s 300% more.

SAY HELLO TO ANOTHER PROBLEM

It is important to understand that just as taxes will increase in the future, so will the cost of living. Between taxes and the cost of living, there is very little room to increase personal savings for the future. Yet everyone is telling you that you will have to save more. Still, every effort to save is confronted by increasing taxation, inflation and increased risks. This creates an enormous amount of financial stress.

The cost of education continues to increase
The cost of health care and insurance rises every year
Property taxes are higher even as poverty values fall
The cost of heat, energy and gas has gone through the roof
Property-insurance premiums have increased rapidly
Food costs are higher
Average household credit-card debt continues to increase
Automobiles, clothing and daily essentials have increased in cost
Personal savings are the lowest since 1934
Government social spending has grown 10 times faster than the economy.

HERE ARE THE SIX BASIC THINGS I DO FOR MY CLIENTS:

Develop a strategy to increase cash flow and money supply in their retirement years.
Eliminate all potential market losses and management fees.
Minimize their future tax liabilities.
Show them how to avoid the agony of the Probate Courts.
And, I never want to affect your current lifestyle in a negative way.
Finally, accomplish all this without them spending one more dime than they are currently spending.

This educational material is provided by the Wealth & Wisdom Institute and Common Sense Economics, LLC.