The President and Congress can’t seem to agree on the best course of action for moving forward, however, they seem to agree that something has to be done.
We are seeing a number of ideas that are being proposed to deal with the expiration of the Bush-era tax cuts and the budget deficit. Some would like to keep tax rates the same or reduce individual rates and limit existing tax deductions to create a broader tax base; while others would like to raise taxes by targeting the higher income earners. Most recently, the consensus seems to be that there will be some form of compromise in Washington.
Some of the ideas to fix the budget deficit are to look closely at the tax expenditures by reducing, limiting or eliminating such benefits. The popular tax deductions that are being reviewed by policy makers include home mortgage interest, charitable contributions, retirement plan contributions, and employer healthcare contributions.1
Nevertheless, it is anyone's guess as to what will happen. Advanced Marketing will continue our efforts to provide you with timely updates as we see more developments in Washington.
1White House, Office of Management and Budget. Table 17-1. ESTIMATES OF TOTAL INCOME TAX EXPENDITURES FOR FISCAL YEARS 2011-2017
Pacific Life, its distributors, and respective representatives do not provide tax, accounting, or legal advice. Any taxpayer should seek advice based on the taxpayer's particular circumstances from an independent tax advisor or attorney.
Pacific Life is a product provider. It is not a fiduciary and therefore does not give advice or make recommendations regarding insurance or investment products.
Pacific Life refers to Pacific Life Insurance Company and its affiliates, including Pacific Life & Annuity Company. Insurance products are issued by Pacific Life Insurance Company in all states except New York and in New York by Pacific Life & Annuity Company. Product availability and features may vary by state. Each insurance company is solely responsible for the financial obligations accruing under the products it issues.
Variable insurance products are distributed by Pacific Select Distributors, LLC (member FINRA & SIPC), a subsidiary of Pacific Life Insurance Company (Newport Beach, CA) and an affiliate of Pacific Life & Annuity Company. Variable and fixed annuity products are available through licensed third parties.
No bank guarantee • Not a deposit • Not FDIC/NCUA insured • May lose value • Not insured by any federal government agency