If you are reading this blog, you know my focus is on asset protection planning. Presumably we are also somewhat like-minded or else you would quickly tire of my rants. My point being, this health care bill has a significant impact on your wealth. And the longer you wait to act on creating an asset protection plan, the worse the problem will get. It is highly likely that many avenues for creating offshore structures and offshore banking will be closed.
With nearly $1T pledged for this enormous bill, there are only 3 ways the federal government can pay for it; cut spending, raise taxes, or inflation. And by inflation, I mean printing dollars. Who here believes the Federal government will cut spending? Anyone, anyone? So basically we are looking at the destruction of your wealth through taxation and inflation. If you don’t believe me, just read your old high school history books. We only have to look as far back as the ’70’s to see what happened when we printed an extra $100B. Tax rates skyrocketed and inflation was in the mid double digits. And $100B now barely covers the congressional furniture and toilet seat budget…
I would like to say that I don’t mean to scare you, but I would be lying. I want to scare you. I want to scare you into action. I personally believe that through true capitalism, the world prospers. And people like you are the capitalists that make the world go ’round. But we are on the verge of a major redistribution of wealth, and it won’t be redistributed into the hands of the productive members in society.
In the past coupl of years, public sector jobs have skyrocketed both in number and in pay. Public sector jobs now average $11.90 per hour MORE than private sector jobs. And the value of public sector benefits is nearly double. The only large net employer over the past year has been in government. Where do you think payroll funds come from?
Entrepreneurs and investors make money. Bureaucrats consume it. Period. The productive members in society create and produce and the taxation from this production pays for government services. With approximately 50% of the population now no longer paying taxes, we cannot continue on this path. We are heading for major change. Maybe not catastrophic, but certainly major change is coming.
And I want you to do something. Protect your assets. Protect yourself from litigation. Protect yourself from over burdensome taxation. Protect yourself from inflation. I hope I have sparked some thoughts with you here and encourage you to take action. Until next time, live well.